Rue 21 2010 Annual Report Download - page 12

State
Total Number
of Stores
West Virginia ....................................................... 8
Wisconsin ......................................................... 8
Wyoming .......................................................... 1
Total ............................................................. 638
See Note 1 to the Consolidated Financial Statements for certain geographic information, which is incorporated
herein by reference.
Distinctive Store Experience
Our stores are designed by our in-house team in partnership with architectural consultants with the goal of
creating an exciting and inviting atmosphere for girls and guys to shop and socialize. Our stores feature colorful
displays showcasing the latest styles and trends, themed dressing rooms and top-40 music. Girls and guys apparel is
located in separate areas with trend walls displaying the newest fashions. We believe that the fun and playful
atmosphere in our stores contributes to the overall shopping experience.
Each of our stores is typically led by a manager, a full-time assistant manager, two part-time assistant managers
and eight to ten part-time sales associates, depending on store volume.
Store Growth and Store Conversions
Our in-house real estate team works along with our brokerage network to negotiate the leases, lease renewals,
and construction costs of every site. We lease all of our stores and determine store locations based on several factors,
including geographic location, demographic information and proximity to other value retailers including Walmart,
Target and Kohl’s. Additionally, we analyze factors such as performance of a particular shopping center, the quality
and nature of existing shopping center tenants and the configuration of the space and the lease terms being offered.
In fiscal year 2010, we opened 105 new stores. We plan to open a total of 110 stores in fiscal year 2011. We
expect our store base to grow from 638 stores today to more than 1,000 stores. Our new store strategy is primarily
focused on expanding our strip center presence. We also see an opportunity to increase our footprint within regional
malls and to a more limited extent in outlet centers.
Converting existing stores to our larger rue21 etc! layout remains central to our growth strategy. As of
January 29, 2011, 449 of our 638 stores were in the rue21 etc! layout. We have plans to continue to convert
additional stores within the next five years to the larger rue 21 etc! layout as opportunities to do so become available.
In fiscal year 2011, we have plans to convert 35 stores to the rue21 etc! layout. The table below highlights certain
information regarding our new stores opened and existing stores converted to the rue21 etc! layout as of the fiscal
year end for each of the years indicated below:
2010 2009 2008
Stores at beginning of period ...................................... 535 449 352
Stores opened during period(1) .................................... 105 88 99
Stores closed during period ....................................... (2) (2) (2)
Stores at end of period ........................................... 638 535 449
Store conversions during the period ................................. 31 26 21
(1) Stores opened during period do not include existing stores that have been converted.
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