Solid Revenue Growth Paves the Way for 09’; 43 Franchise Agreements in Development Pipeline.

Minneapolis, MN – Winmark Corporation (Nasdaq: WINA), the franchisor of well-known brands Play It Again Sports®, Once Upon a Child®, Plato’s Closet® and Music Go Round® that buy, sell, and trade new and gently used merchandise, today announced its aggressive growth plans for 2009 which call for more than 50 new locations across the United States.



Winmark’s momentum comes as the company is outperforming the vast majority of U.S. retailers with significant year over year same store sales and overall revenue increases. As an example of the company’s strength, revenues for its Plato’s Closet brand were up over 30 percent in 2008 versus 2007.



“Franchise investors are taking notice. Americans have made it clear that they are looking for products that are both affordable and high quality,” said Steve Murphy, president of franchising for Winmark Corporation. “Our concepts directly address this need and it has shown through the growth of our same store sales and franchising efforts.”



In 2008, Winmark opened more than 57 new franchise locations in the U.S. across all brands and expanded into major cities such as San Antonio and Las Vegas. In addition, through the end of September 2008, Winmark had a 100 percent franchise renewal rate for all locations with expiring agreements. Building on their growth in 2008, Winmark has put into motion a bold expansion plan which includes elevating its franchise presence to more than 1,000 locations nationwide in the coming years.



“In 2009, we will continue to attract qualified franchise owners from a variety of professional backgrounds,” said Murphy. “Winmark provides the support and tools of a proven business model franchise investors can depend on in good times and during economic downturns as we have today.”



As the nation’s economy struggles, Winmark stands out from its competition in the retail industry. Retailers across the nation on average are seeing sales decrease by close to 10 percent compared to last year (US Department of Commerce), while Winmark’s brands are experiencing significant revenue increases. Collectively, Winmark’s family of brands is generating double digit sales increases, increasing 12% compared to last year.



“It isn’t a secret that we are in a much better place than most retailers and franchise organizations,” added Murphy. “We credit the current success of our stores to our customers’ loyalty and our family of dedicated, hard-working franchisees.”



In addition to finding quality products at a great value, consumers are also selling their used merchandise for cash on the spot at each of the brands’ stores. As more consumers look to create additional savings, selling their items for cash or using them to trade in with a purchase simply makes good fiscal sense to most families. “In addition to more cash in their pockets, consumers feel good that they are doing their small part to recycle their quality merchandise rather than fill our already overflowing landfills,” commented Murphy.