Stein Mart 2009 Annual Report Download - page 6

The following table reflects the percentage of our sales by major merchandise category, including shoe department sales, for the
fiscal years indicated:
2009 2008 2007
Ladies’ and Boutique apparel 46% 46% 45%
Ladies’ accessories 13% 13% 12%
Men’s 20% 20% 20%
Gifts and linens 11% 11% 13%
Shoes 7% 7% 7%
Other 3% 3% 3%
100% 100% 100%
LOCATIONS, GROWTH STRATEGY AND STORE APPEARANCE
On January 30, 2010, we operated 267 stores in 30 states and the District of Columbia, primarily concentrated in the Southeast and
Texas. Most locations are in neighborhood shopping centers in close proximity to a community’s upscale residential concentrations.
Our optimal co-tenants within these shopping centers cater to a similar target customer and are typically highly-frequented retail
formats such as supermarkets, specialty retailers and restaurants. All Stein Mart locations, including the corporate headquarters, are
leased.
We are selectively seeking only those properties that strengthen our current portfolio of stores. We utilize regional tenant
representative brokers to identify and propose potential sites for new or relocated stores. Their proposals are augmented by an
independent sales forecast, and reviewed by a senior level real estate committee for approval.
Our typical store is approximately 37,000 gross square feet with a racetrack design, convenient centralized check-out, and individual
dressing rooms. We display merchandise in lifestyle groupings of apparel and accessories, which we believe enables the customer to
locate desired merchandise in a manner that encourages multiple purchases. We seek to create excitement in our stores through the
continual flow of fashion merchandise, targeted sales promotions, store layout, merchandise presentation, and the quality, value and
depth of our merchandise assortment.
CUSTOMER SERVICE
Our stores offer many of the services typically found in better department or specialty stores, such as a liberal merchandise return
policy, merchandise locator service, a Preferred Customer program, a Stein Mart Platinum MasterCard® and electronic gift
certificates. Each store is staffed to provide a number of sales associates who provide on-demand customer service. All of our stores
have their own Boutique, staffed generally by specially-recruited associates who are civically and socially prominent in the community
and who generally work one day a week. We believe this staffing approach adds credibility and fashion integrity to the department.
MARKETING
Our marketing efforts are focused on protecting and enhancing the relationship with our best customers in order to increase our share
of her wallet, as well as attracting new customers, particularly younger shoppers who are vital to our future growth. We engage in
periodic market research to identify how best to reach each of these audiences and, in consultation with our outside advertising
agency, adjust our marketing focus accordingly.
Our advertising stresses upscale, fashion merchandise at significant savings. We primarily utilize a combination of full-color circulars
(both inserted in newspapers and mailed directly to homes), direct mail, newspaper run of press (ROP) advertising, and email to
distribute our sales promotion messages. To reach a broader audience and communicate our brand position, we use television
advertising to build brand awareness and to drive sales for specific promotional events. Radio advertising is also employed to create
additional excitement for specific one-day sales. We utilize digital media including online advertising and have a solid presence on
social networking sites, including Facebook and Twitter.
Our co-brand Stein Mart Platinum MasterCard® and our Preferred Customer Card programs are important marketing tools. As
customers use the Stein Mart Platinum MasterCard®, they accumulate points that generate reward certificates at certain levels.
Preferred Customer Card customers receive preview copies of select circulars mailed to their home, members only shopping days,
birthday discounts and special email announcements. Both cards provide useful information regarding customer preferences, habits
and advertising receptivity.
4