Item 2. Properties

At December 27, 2014, the Company operated 1,382 stores in 49 states. The Company leases approximately 93% of its stores, two distribution sites and its Merchandising Innovation Center (planogram) located in Nashville, Tennessee. Store leases typically have initial terms of 10 to 15 years, with two to four renewal periods of five years each, exercisable at our option. No single lease is material to Company operations.

Following is a count of store locations by state:

(a) Includes the Company’s two HomeTown Pet stores.

Following is a list of distribution center locations including the approximate square footage and if the location is leased or owned:

(a) The leased facility in Hagerstown is treated as an extension of the existing owned Hagerstown location and is not considered a separate distribution center.

Index

In addition, our eighth distribution center is under construction in Casa Grande, Arizona. This owned facility will be approximately 650,000 square feet, and it is expected to be fully operational by the fourth quarter of 2015.

The Company’s Store Support Center occupies approximately 260,000 square feet of owned building space in Brentwood, Tennessee, and the Company’s Merchandising Innovation Center occupies approximately 32,000 square feet of leased building space in Nashville, Tennessee.