The company actually opened 128 stores during the year.
Like last year, Fastenal wants to increase its store base from 10% to 15% more new stores, and that means from 100 to 150 new stores in 2002. But the company cautions that planned openings can be altered in a short time span, usually less than 60 to 90 days. As the year unfolds, it will continue to reevaluate the level of planned openings.
In its fourth quarter earnings report, Fastenal says the expenses of opening the new stores were one factor in its 13.2% decline in earnings to $70.1 million despite a 8.5% increase in sales to $809 million. The added expenses related to payroll, occupancy and transportation costs of new stores affect the company's ability to leverage earnings in aslowing industrial economy, especially given that its new stores take up to a year to achieve profitability.
However, the company said it depends on the new stores for future growth.
At the end of last year, Fastenal had 1,025 stores.
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