THE LION'S DEN STORY

Family Owned Since 1971

For nearly fifty years, Lion’s Den has been the official store of romance. We aspire to provide pleasure products in a comfortable, safe and upbeat atmosphere; along with the education needed for our patrons to confidently express themselves.

Lion’s Den was one of the first major specialty chains to recognize a shift in demographics and pivot from targeting mainly single men (who were the main source of video sales) to appealing to single women and couples. Over the last 8 years we’ve seen a substantial increase in female customers 18 – 45 who now represent over fifty percent of our Customer Rewards base. We’ve also diversified our product offering and merchandising approach, as well as undergone a re-brand to entice this newly targeted demographic.

In a steep departure from those early days Lion’s Den is now increasingly looked upon as more than simply a retailer. We’ve become a sort of relationship aid. And each transaction is a means to help our customers enhance their personal wellness, which in turn leads to happier and healthier relationships.

INFORMATION DRIVEN

CHANGES IN SOCIETY HAVE LED TO CHANGES IN HOW WE DO BUSINESS

Our industry has had a perception problem in that a large portion of the public has an antiquated idea of what we sell and what we promote. We realized that we needed to adapt and innovate to survive and ultimately thrive.

Now, through innovative marketing, branding and merchandising strategies we have increasingly been able to overcome that stigma by (rightfully) framing our offering as a means to help our customers enhance their personal wellness. Best practices like consumer research, attending several

product shows and industry seminars each year and engaging our customers through a robust social media presence enable us to keep abreast of customer demand and monitor industry and cultural trends. Through our research and subsequent strategy to engage a younger and decidedly more female demographic we found that our industry lacked any type of Customer Loyalty programs. Now, after just 4 years, LD RewardsTM boasts 350,000 members and now accounts for forty-five percent of our total revenue. Our transaction size is up and frequency has increased substantially. We’re able to

remain engaged with our customers through weekly email and text blasts to our Rewards base as well as our active social media presence on Facebook, Twitter, Instagram and Pinterest.

Lion’s Den is one of the most recognized brick and mortar specialty retailers in the country. In spite of built-in obstacles like free online content and the trend towards e-commerce we remain healthy and relevant. We are one of the only American specialty retailers to break out of a predominantly regional footprint nurturing a brand that continues to thrive while others in our industry are downsizing or outright closing.

LOVESTYLE

CASHING IN ON SEXUAL WELLNESS AS A SELF -CARE CATEGORY

MAINSTREAMING “LOVESTYLE” BRANDS

Are mass retailers prepared to compete — at least to some degree — with adult specialty retail stores?

That is the question many in the industry are asking as more affordable sexual wellness products, including toys and gels, are hitting the marketplace and taboos on selling these items in mainstream stores fade away.

As the millennial consumer continues to become a force our research shows that sexuality is not shameful, stigmatized, secreted. It’s enjoyed. It’s celebrated. It’s mainstream.

And shopping for products that we provide – Lovestyle brands – is no longer a single man’s game with a focus on magazines and movies. Women and couples are seeing sexual health and expression, and satisfaction in a completely different light.

Retailers are looking to these new products to drive growth in an otherwise uneven category. According to IRI, a Chicago-based market research firm, for the 52 weeks ended July 14, 2019 sales of sexual

health products in U.S. multi-outlet stores — grocery, drug, mass market, military and select club and dollar stores — totalled roughly $1.05 billion, an increase of 3.9% compared with the same period the previous year.

The subcategory that saw the most gains was sexual enhancement devices, with sales of $35.8 million, an increase of 20.6% compared with the previous year.

RELIABLE. PROFESSIONAL. PROVEN.

HEAR FROM THE PEOPLE WE DO BUSINESS WITH

CARNEGIE COMPANIES (SINCE 1999)

“Lion’s Den has consistently demonstrated professionalism and integrity in our interactions over the years. Their maintenance impact has rated among the lowest of our lessees and we continue to regard them as a steady and reliable client.

We’ve noted that as trends in the industry have evolved from male dominated products and traffic Lion’s Den have proven their relevance by attracting a younger and more female demographic to our properties.”

CHEYENNE BUILDERS (SINCE 2005)

“The industry is totally different today than it was 5 or 10 years ago. LD has not only recognized the change but has adapted to fit with in the mainstream and our centers. With a substancial female demographic, LD attracts the customers we want to our properties. They are professional, low maintenance and pay on time.”