Restoration Hardware 2012 Annual Report Download - page 70

The following list shows the number of retail stores in each U.S. state and each Canadian province where
we operate as of February 2, 2013:
Location Store Location Store Location Store
Alabama 1 Massachusetts 2 Rhode Island 1
Arizona 1 Michigan 1 Tennessee 1
California 17 Minnesota 1 Texas 6
Colorado 1 Missouri 2 Utah 1
Connecticut 2 New Jersey 2 Virginia 2
Florida 4 New York 3 Washington 1
Georgia 1 North Carolina 2 District of Columbia 1
Illinois 3 Ohio 3 Alberta 2
Indiana 1 Oklahoma 1 British Columbia 1
Louisiana 1 Oregon 1 Ontario 2
Maryland 1 Pennsylvania 2
Total 71
Outlet Stores
As of February 2, 2013, we operated 13 outlet stores in 12 states. Our outlet stores are branded as
Restoration Hardware Outlet and located primarily in large outlet malls. Our outlet stores serve as an efficient
means to sell discontinued or irregular inventory outside of our core sales channels.
Source Books
We produce a series of catalogs to showcase our merchandise assortment, including our Interiors, Outdoor,
Baby & Child, Objects of Curiosity, Small Spaces and Tableware. Our catalogs are one of our primary branding
and advertising vehicles. We have been expanding the page counts of our catalogs, which allows us to showcase
nearly our entire product assortment. We refer to these larger catalogs as Source Books. For example, our Spring
2013 Source Books presented over 80% of our product assortment at the time of publication. We have found that
when we display a greater merchandise assortment in our catalogs, we experience increased sales across all of
our channels. As in our retail stores, our catalogs present our merchandise in lifestyle settings that represent our
unique design aesthetic. Our Source Books also feature profiles of select artisan vendors and other compelling
editorial content regarding home décor. All creative work on our catalogs is coordinated by our in-house
personnel in our RH Center of Innovation & Product Leadership, providing us greater control over the brand
image presented to our customers, while also reducing our catalog production costs.
We use our catalogs to drive sales across all of our channels, and we generally experience increased sales of
the products featured in our catalogs. We mail our catalogs to addresses from our proprietary customer database,
as well as to addresses provided to us by third parties. We also use customer data that we collect to determine
which prospective customers are most likely to respond to our catalogs.
Our catalogs, in concert with our e-commerce channel, are a cost-effective means of testing new products,
and allow us to launch categories in a disciplined, expeditious and cost-effective manner.
E-Commerce
Our primary websites, www.restorationhardware.com and www.rh.com, provide our customers with the
ability to purchase our merchandise online. In May 2008, we launched www.rhbabyandchild.com,ane-
commerce enabled website devoted to our children’s furnishings category. In May 2011, we launched apps for
smartphones and tablets that enable customers to browse our growing product assortment.
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