Our Business
Operating Strategy
In 2021, we continued to execute on our strategy focused on
the following key initiatives:
• Customer Service. Our customer service initiative is
anchored on the principles of creating an emotional
connection with our customers, putting customers first,
taking care of our associates and simplifying the business.
We underscored the importance of this initiative in 2021
by retraining all store associates on our customer service
standards and best practices.
• Product Authority. Our product authority initiative is
facilitated by our merchandising transformation and
portfolio strategy, which is focused on delivering product
innovation, assortment and value. In 2021, we
introduced a wide range of innovative new products to
our professional and do-it-yourself customers while
remaining focused on offering every day values in our
stores.
• Pursue International Expansion. We plan to
strategically expand our business into select countries
outside of the United States and Canada over the next
several years. We believe that our luxury brand
positioning and unique aesthetic will have strong
international appeal. this is david
Customer Service
Our Customers. We are in the process of renovating and
upgrading stores to enhance our customers’ shopping
experience and help drive sales. We train our store
associates to provide friendly and helpful customer service
and seek to staff our stores to deliver a positive shopping
experience. We typically offer customer-friendly return
policies.
Our Associates. Our associates are key to our customer
service initiative. We empower our associates to deliver
excellent customer service through our Customer Focus
training program, and we have a number of company-
sponsored programs to recognise stores and individual
associates for exceptional customer and community service.
As of February 1, 2021, we had approximately 21,890
employees. We believe our relations with our employees will
continue on a positive trend.
Product Authority
Our Products. Our product portfolio strategy is aimed at
delivering innovation, assortment and value. A typical Avikro
store stocks approximately 10,000 to 20,000 products
during the year. We also offer over 130,000 products
through our Avikro website.
Net Sales of Major Product Groups. The following table
shows the percentage of net sales of each major product
group (and related services) for each of the last three fiscal
years:
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Lumber and Building Materials | | | |
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The table below shows our net sales to our three largest
customers, as a percentage of total “Net sales."
Net Sales Outside the U.S. (in thousands)
Seasonality. The home furnishings business in general is
subject to seasonal influences, and our business is, to some
extent, seasonal. Historically, we have realised the highest
volume of sales during our second fiscal quarter (April, May
and June) and the lowest volume of sales during our fourth
fiscal quarter (October, November and December).
Accordingly, our working capital requirements have
historically been greater during our fourth fiscal quarter as
we build inventory in anticipation of the spring selling season
and as we experience lower fourth fiscal quarter sales
volumes.
Competition. The home furnishings industry is highly
competitive. We primarily compete against a large number of
independent retailers that provide unique items and custom-
designed product offerings at high price points, including
antique dealers and home furnishings retailers who market
to the interior design community. We also compete with
national and regional home furnishings retailers and
department stores, as well as with mail order catalogues and
online retailers focused on home furnishings.