gman 2015 investor presentation

8/20/2019 GMAN 2015 Investor Presentation

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STIFEL 2015CONSUMER CONFERENCE

September 17, 2015


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The following information contains forward-looking statements. These forward-looking

statements are based on Management ’ s current expectations and beliefs, as well as a

number of assumptions, estimates and projections concerning future events. These

statements are subject to risks, uncertainties, assumptions, including those discussed in

the “Ris k Factors ” section of our reports filed with the Securities and ExchangeCommission, and other important factors, many of which are outside Management ’ s

control, that could cause actual results to differ materially from the results discussed in

the forward-looking statements. You are cautioned not to put undue reliance on such

forward-looking statements because actual results may vary materially from those

expressed or implied. All forward-looking statements are based on information availableto Management on this date, and Gordman Stores, Inc. assumes no obligation to, and

expressly disclaims any obligation to, update or revise any forward-looking statements,

whether as a result of new information, future events or otherwise.

Safe Harbor Statement

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Safe Harbor Statement


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Our Concept

Gordmans is an everyday,value-priced department store

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Our Concept

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Every day pricing up to60% off department storesprices


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Our Concept

Department store brandsand assortment

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Fun & Friendlyshopping atmosphere

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Merchandising Strategy

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• Branded merchandise for the entire family:• Womens/Juniors (31%)• Home Décor and Essentials (26%)• Accessories/Fragrances (15%)• Mens/Young Mens (13%)

• Childrens (10%)• Shoes – licensed business (5%)

• Everyday selling price up to 60% off departmentstore retail prices.

• Limit promotions to natural shopping events(i.e. Back to School, Black Friday, Holiday).


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Merchandising Strategy Cont.

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Recent Actions

• Hired a strong, seasoned Chief Merchant as of January2015.

• Earlier seasonal merchandise transition.

• Timely clearance markdowns, reduced point of salediscounting and improved merchandise margin rates.

• Focused on key destination businesses such as Juniors,Young Men’s, Team Apparel, Plus Sizes, Big & Tall andHome. Added brands where needed and invested in keyfashion trends.

• In 2015, added a line queue with impulse merchandise inall stores.


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Growth Strategy

• Grow comp store sales

• Grow store base

• Become an omni-channel retailer

Current Actions• Our comp store sales performance has improved sequentially over the

last 3 quarters.

• We opened 6 new stores in 2015. We expect to open 4-5 new stores in2016.

• We launched our eCommerce platform in August, 2015. We are very

happy with the results.

• We expect to produce positive store sales results in the fall 2015season. Key drivers include: better inventory positioning, content, andmarking, a new marketing campaign, our eCommerce launch and a newline queue program. 10


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Marketing Strategy

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• Leverage loyalty program to drive traffic

• Sharpen our marketing message to focus on value• Communicate our value advantage through broadcast media

and print.

• Supplement our everyday value marketing message withpromotional events focused around key natural shopping periods

• Communicate the event promotional offer via broadcast, ROP,email, direct mail and mobile.

Recent Actions

• YTD, we have grown our loyalty guest base from 3.6 to 4.4million active members.

• Currently, loyalty members account for 71% of sales.• Increased the frequency of loyalty communication via direct

mail, email and mobile.• Engaged an outside advertising agency to create a value

campaign. The new campaign launched via broadcast mediafor 2015 Back to School and will run throughout the fallseason.


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Guest Loyalty Profile

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• Our guest shops us frequently

• The monthly shopper (38%) accounts for 55% of our sales.

• We have strong purchase completion.• 87% of guest visits result in a purchase.

• We have high guest satisfaction.• 94% of our guests are “thrilled” or “very satisfied” with their

purchase.

• We have substantial drawing power.• On average, our guests travel 18 minutes to our store.• 34% of our guests travel greater than 25 minutes.

Frequency % At least monthly 38Every 2 months 21Every 3 months 17Every 4 – 12 months 24


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2014 Geographic Footprint

2015 New StoresBainbridge, OH (Cleveland)Mentor, OH (Cleveland)Edina, MN (Minneapolis)Lansing, MIBismarck, NDCincinnati, OH


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New Store Model Generates Strong Returns

(dollars in thousands)

45,000 - 50,000 square feet

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Store Size

New Store

Investment

UnitEconomics

Total initial investment $5,194

3,864

$1,330

$6,500 - $7,500

$708 - $1,056

53% - 79%

1.9 - 1.3 yrs

Less: Landlord contribution

Net initial investment

Store sales4-Wall contribution

Cash-on-cash return

Payback period

Leasehold and fixtures $4,200

Inventory, net of payables 524

Pre-opening expenses 470


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gman 2015 investor presentation

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