This excerpt taken from the PETM 10-K filed Apr 10, 2006.
New stores may place increasing demands on management and operating systems, may erode sales at existing stores and comparable store sales growth may decrease as stores grow older.
We currently operate stores in most of the major market areas of the United States and Canada. Our plans for fiscal 2006 include opening approximately 90 net new stores, primarily in existing multi-store markets. The increased demands placed on management by opening new stores could result in operational inefficiencies and less effective management of the business and associates, which could in turn adversely affect our financial performance. Opening new stores may attract some customers away from other stores already operated by us in those markets and diminish their sales.
Our comparable store sales increases were 4.2% and 6.3% for fiscal 2005 and 2004, respectively. As a result of new store openings in existing markets, and because older stores will represent an increasing proportion of our store base over time, our comparable store sales increases may be lower or sales could decrease in future periods.