New-store growth enabled us to increase sales in 2002. Domestically, Borders stores
generated $2.3 billion in sales in 2002, up 3.8% over 2001. While we launched
several new initiatives during the third and fourth quarters to increase sales
and further differentiate our business — including the launch of a new Express
In-Store Pick Up service with Amazon.com — these programs did not have much time
in 2002 to develop or make significant contributions to growth, yet we look
forward to their potential for further contributions.
Category Management is primary among these initiatives. A successful concept in
retail management for many years, Category Management is:
- a proven business philosophy with the consumer as the focus;
- a collaborative business process with our suppliers; and
- a dynamic business strategy that impacts organizational design and culture.
Applying Category Management techniques to our business, individual categories of
our stores are now managed as distinct profit centers, each with its own goals and
business plans. In 2002, we completed implementation of Category Management plans
in six categories, increasing sales, percentage of in-store sales and market share.
By the fourth quarter of 2003, about 70% of the categories in
Borders stores will
have category plans implemented to improve performance. We are committed to
accelerating this highly effective initiative.
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