HRMA - September 2009 Presentation

Strategies for Building a High-Trust Culture: Developing Best PracticesHuman Resource Management Association Meeting

September 16, 2009

Build-a-bear workshop Company Overview

Build-A-Bear Workshop Overview

• Global leader in interactive retail where children ‘from 3 to 103’ can make and customize their own stuffed animals

– First store opened 1997 at the Saint Louis Galleria

– 346 primarily mall-based Company-owned stores in North America, the UK, Ireland and France

– 63 franchised stores in 14 international countries

• Approximately $450,000,000 Revenue in 2008

• 6,000 associates worldwide

Note: Store count as of 12/31/08

A Unique Retail-Entertainment Experience

Conventional Retail

Merchandise driven – sell the brand, item, or price

Traditional display techniques

Appeals to a particular demographic

Sales driven through markdowns and promotion

Build-A-Bear Workshop

Sells the brand experience

Highly interactive theme park techniques

Appeals to a broad demographic

Marketing builds the brand and drives sales

Limited discounting, promotions or markdown strategies

VS.

“I am American Business”--CNBC

Success through our people!

Our Associates ARE the Experience

Our goal is to deliver a great associate experience so associates will deliver great Guest experience

• 83% of all associates rate job satisfaction as “satisfied” or “highly satisfied” with about 50% giving the highest rating (August 2008)

Superior customer experience with powerful

brand connection and flawless store execution

Great Guest Experience Creates Customer Loyalty

People Strategy

• Hire the right people

• Highly selective hiring process

• Comprehensive training

• Low turnover rates compared to industry average

• Bonuses paid on sales AND Guest satisfaction

Creates Loyal Guests

• Ongoing Guest Satisfaction surveys

• Highly consistent across all stores

• “WOW” results on guest surveys

Success through our people…What gets us

there?

• Commitment from the top!

• Company Values

• Highly Engaged Workforce

Commitment from the Top

To The World In Bear Speak (Bearisms)

• Teamwork It takes a village to raise a bear

• Listening In order to hear, you must listen through your heart

• Learning Bears teach you to love one hug at a time

• Reward & Recognition Take time to taste the honey

• Breakthrough Results Reach fur the stars!

• Giving Back Always lend a helping paw

Build-A-Bear Values are the Key to our Culture!!

Highly Engaged workforce

• What does it mean to a company?

• What value does it provide a company more than a typical workforce would?


A quick story:

• Listen for the passion and engagement

• It’s more than a job!


Here is what our teams told us in the 2008 Associate Experience survey:

• 78% said that Build-A-Bear Workshop makes a difference in the world.

• 88% agree that Build-A-Bear Workshop is a company that values their contribution to its overall success.

• 89% of all associates agreed with the statement, “I am proud to tell others that I am part of Build-A-Bear Workshop.”

A great guest experience

• Guest Satisfaction Surveys:– WOW Results…Score is “Top

Box” ( 5 of 5)…”Nothing could be done to improve their store experience”

• Key drivers put focus on behaviors– Greeting– Great stuffing experience– Suggestions in Dress Me– Focus on moving Guests at

Take Me Home

74 7579 76 76

2004 2005 2006 2007 2008

Annual Guest Satisfaction Results

CNBC Producer’s Notes:

April, 2009

“When you enter Build-A-Bear's World Bearquarters in St. Louis, you get the feeling that it’s a fun place to work. The environment taps into the little kid in all of us: colorful walls plastered with murals of teddy bears, designers and artists working on the latest outfits and accessories and bearisms inscribed along the walls, like "You aren't born a bear, you become a bear." All that AND you can even bring your dog to work! Don't get me wrong, beneath the colorful atmosphere beats the heart of a hard working company. And when you've had a chance to spend some time with company founder Maxine Clark, it's easy to understand how it all comes together. "It's about having fun, sharing, and caring." She gets it. Her employees get it. And the customer benefits from that philosophy as well.”