The Kitchen Collection Inc.: NACCO, Subsidiaries

Kitchen Collection

Business Highlights

Successful, Proven Format

Proven Kitchen Collection format has helped Kitchen Collection become the leading specialty retailer of kitchen and related products in outlet malls
Focus on wide variety of specialty kitchenware delivers above average margins
In August 2006, Kitchen Collection acquired the assets, including the name, of Le Gourmet Chef, Inc., which expanded Kitchen Collection’s presence in outlet and traditional malls
As of December 31, 2009, Kitchen Collection had a total of 296 stores; 219 Kitchen Collection^® stores and 77 Le Gourmet Chef^® stores

Traditional Mall Format

Stores located in traditional malls focus on a wide range of nationally branded specialty housewares
54 permanent, traditional mall Kitchen Collection^® stores are operating as of December 31, 2009
16 permanent, traditional mall Le Gourmet Chef^® stores are operating as of December 31, 2009
Potential market of over 500 traditional enclosed malls nationwide

Continuous Improvement

Kitchen Collection has developed specific approaches over time to improve the three main retail performance drivers

Kitchen Collection continually tests and implements new approaches to further improve these key drivers

Disciplined Overhead Management

Headquarters staff provides merchandising expertise, accounting, information systems and oversight with a focus on maintaining a low cost culture
Small number of full-time employees at store level

Leading Brand Names

Top brands sold by Kitchen Collection^® and Le Gourmet Chef^® include Kitchen Aid, OXO, Cuisinart, Wilton, Calphalon, Emerilware, Henckels and Wusthof
Kitchen Collection sells a wide range of branded housewares including Hamilton Beach^® and Proctor Silex^® kitchen electrics, including close-out and excess inventory items from Hamilton Beach Brands, as well as Hamilton Beach^®- and Proctor Silex^®-branded non-electric gadgets, bakeware and cookware

Efficient Supply Chain

The Kitchen Collection distribution center, upgraded in 2006, allows higher throughput in same space
The Le Gourmet Chef distribution center, which came online in mid-2008, allows for added efficiency
Many high-volume products ship directly to store locations from U.S.-based vendors