Rue 21 2011 Annual Report Download - page 11

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Please find page 11 of the 2011 Rue 21 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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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 that we believe will drive traffic to a shopping center. 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 2011, we opened 120 new stores. We plan to open a total of 120 stores in fiscal year 2012. We
currently expect our store base to grow from 755 stores as of January 28, 2012 to 1,500 stores. Our new store
strategy is primarily focused on expanding our presence in small and middle market communities that are starved
for fashion. We also see an opportunity to increase our footprint within regional malls.
Converting existing stores to a larger rue21 etc! layout continues to be an integral part of our growth strategy.
As of January 28, 2012, 602 of our 755 stores were in the rue21 etc! layout. We have plans to continue to convert
additional stores within the next five years to a larger rue 21 etc! layout as opportunities to do so become available.
In fiscal year 2012, we have plans to convert 30 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:
Fiscal Year
2011 2010 2009
Stores at beginning of period ........................................... 638 535 449
Stores opened during period(1) .......................................... 120 105 88
Stores closed during period ............................................. (3) (2) (2)
Stores at end of period ................................................ 755 638 535
Store conversions during the period ...................................... 38 31 26
(1) Stores opened during period do not include existing stores that have been converted.
rueCulture and rueCommunity
A key component to our ongoing success has been our ability to preserve and continue to build our deep rooted
corporate and customer culture. The passion and commitment fostered by rueCulture enables us to connect with our
employees and customers, to differentiate our customers’ shopping experience and to ultimately drive our growth
and profitability.
Customer Connection
We create a fun and exciting fashion destination for our customers both in the store, through our themed
dressing rooms and our top-40 music selection, and on the internet via our website, the rueCommunity blog and
other social networking sites such as Facebook, Twitter and YouTube. We consult a panel of teen advisors who
regularly provide us with feedback on products and trends. By carrying the newest styles and regularly updating
floor sets, we encourage our customers to shop our stores frequently. Our store associates share the rue21
excitement and deliver a memorable, high energy in-store experience to our customers. Our stores have become a
community destination of choice where customers can meet and socialize with friends.
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