Petsmart 2013 Annual Report Download - page 19

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11
or if we fail to otherwise positively differentiate our customer experience from our competitors, our business and
results of operations could be adversely affected.
We may be unable to continue to open new stores and enter new markets successfully. If we are unable to
successfully reformat existing stores and open new stores, our results of operations could be harmed, and
comparable store sales at our existing stores may decrease due to age or the impact of opening new stores in
the same area, which could adversely impact our results of operations. Also, store development may place
increasing demands on management and operating systems and may erode sales at existing stores.
We currently operate stores in most of the major market areas of the United States, Puerto Rico, and Canada.
Our ability to be successful with our store development efforts is dependent on various factors, some of which are
outside our control, including:
• Identifying store sites that offer attractive returns on our investment notwithstanding the impact of
cannibalization of our existing stores;
• Competition for those sites;
• Successfully negotiating with landlords to achieve acceptable lease terms and obtaining any necessary
governmental, regulatory, or private approvals;
• Timely construction of stores;
• Our ability to attract and retain qualified store personnel; and
• Our ability to reformat existing stores in a manner that achieves appropriate returns on our investment.
To the extent we are unable to accomplish any of the above, our ability to open new stores and hotels or
reformat existing ones may be harmed and our future sales and profits may be adversely affected. In addition, we
can make no assurances that we will be able to meet the forecasted level of sales or operate our new stores or
PetsHotels profitably.
As a result of new store openings in existing markets, and because older stores will represent an increasing
proportion of our store base over time, our comparable store sales performance may be materially impacted in
future periods. In addition, opening new stores in a market will attract some customers away from other stores
already operated by us in that market and diminish their sales.
Our store development plans place increased demands on existing systems, procedures, and management and
could result in operational inefficiencies and less effective management of our business and associates, which
could in turn adversely affect our financial performance. An increase in construction costs and/or building material
costs could also adversely affect our financial performance.
Our leases are typically signed approximately nine months before a store opens. As a result, we may be unable
to timely adjust our store opening schedule to new economic conditions or a change in strategy.