Businessweek

Gordmans Stores, Inc. operates everyday value price department stores. As of January 28, 2012, the company operated 74 stores under the trade name ‘Gordmans’ located in 16 primarily midwestern states situated in a variety of shopping center formats, including regional enclosed shopping malls, lifestyle centers, and power centers. The company’s merchandise selection includes a range of apparel, footwear, accessories (including fragrances), and home fashions products. Within apparel, it offers young men’s, men’s, juniors’, women’s, team, plus sizes, maternity and children’s clothing, which includes offerings for infants, toddlers, boys and girls. The accessories business includes designer fragrances, intimate apparel, handbags, sunglasses, fashion jewelry, legwear, and sleepwear. The company’s stores also feature a large home fashions section, which includes wall art, photo frames, accent furniture, accent lighting, candles, ceramics, vases, seasonal décor, floral and garden, gourmet food and candy, toys, luggage, pet accessories, housewares, decorative pillows, fashion rugs, and bedding and bath products. Licensing Agreements Destination Maternity Corporation: In 2006, the company executed a license agreement with Destination Maternity Corporation (Destination Maternity), a maternity retailer, to operate a maternity business in each of its stores. The license agreement is for Destination Maternity’s flagship Motherhood Maternity brand. DSW, Inc.: In 2004, the company entered into a license agreement with DSW, Inc., a specialty footwear retailer that sells a selection of designer and name brand footwear at everyday value prices. Strategy The company intends to increase its store base in excess of 10% annually. Therefore, in the near term, the company intends to focus its expansion primarily within a 1,000 mile radius of its corporate headquarters in Omaha. Seasonality The company’s business is subject to the seasonal fluctuations typical of the retail industry. A disproportionate amount of sales and net income are realized during the fourth quarter, which includes the holiday selling season. Operating cash flows are typically higher in the fourth fiscal quarter due to inventory related to working capital requirements in the third fiscal quarter. The company’s business is also subject, at certain times, to calendar shifts, which may occur during selling periods close to holidays, such as Easter, Thanksgiving and Christmas, and regional fluctuations, such as sales tax holidays. Intellectual Property The company’s trademarks include Gordmans; Something Unexpected; and Give the Unexpected. Competition The company competes with all other retail formats: traditional department stores such as Macy’s and Dillard’s; national mid-tier chains, including Kohl’s and J.C. Penney; discount stores, including Target and Wal-Mart; and specialty stores, such as Old Navy. History Gordmans Stores, Inc. was founded in 1915. In 1975, entrepreneur Dan Gordman started the 1/2 Price Stores. In 1996, Dan’s grandson, Jeff Gordman, led an initiative to reposition the company in an effort to better communicate unique selling proposition, which went far beyond merely low prices. The capstone of this repositioning initiative was the re-naming of the stores from the 1/2 Price Stores to Gordmans, which was completed in 2000.