Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jeff Stein – Stein Research
Jeff Stein – Stein Research
I’m wondering if you could talk a little bit out the distribution center on the West Coast and how you plan to handle your shipments to stores.
Steve Fishman
The furniture distribution facility that we discussed is very similar to what we did in Columbus last year that actually we’re almost anniversarying. Frankly we’ve been moving pallet ready replenishable type box sized goods through the RC/DC our basic closeout distribution center in California to the West Coast probably for the last six months. It’s going to be very, very similar. It will be an expense saving.
It clearly won’t be the kind of expense saving that we are going through at this particular point because the Columbus distribution facility handled many more stores then California did. Its going to be very easy, very simple, the lease is up in September, we’ve already starting flowing furniture through the closeout distribution facility and it’ll be exactly the same as what we did with Columbus it’ll only be handling about 275 to 300 stores though versus the other distribution facility that handled the balance of the chain.
We’re experienced in that, it’s going to be really easy. We’ve offered the majority of the people in the furniture distribution facility jobs if they so choose to want to do so and come over. It’s a win, win for everybody.
Jeff Stein – Stein Research
I’m wondering if you could just amplify a little bit on your tests that you’re doing in marketing with respect to the Buzz Club.
Steve Fishman
It’s kind of early but what we’re clearly doing is as you know the Buzz Club is something we’ve been really focused on and we believe very strongly in it and we’ve got some things going on in the last half of the year that I’ll speak to when we get to it at that particular point. We have over four million Buzz Club members today and we found that communication and recognition through those Buzz Club members is to a dedicated, committed customer number one who likes us an awful lot and number two, the cost associated with that is pretty significant.
What we’re actually testing at this particular point is where we have a high concentration of Buzz Club memberships and we know this by store location actually, we’re dropping off TMCs or pre-prints and finding out if we can eventually start working our way from costs associated with actually hard core pre-prints and communicating online. Its way too early to even discuss it too much. Again, it offers some real exciting flexibility in years out as we move forward communicating with those customers and saving money at the same time.
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