Sourcing Our Products

Sport Chalet is committed to sourcing its products only from vendors who have agreed to operate their supply chains in a socially responsible manner. In particular, Sport Chalet condemns the use of child labor, slavery and human trafficking.

Sport Chalet requires each of its vendors to agree to comply with the laws of the countries in which they do business, including laws against child labor, slavery or human trafficking, and unsafe working conditions. This requirement is included in our Vendor Partnership Guide (Details Below).

Sport Chalet seeks to maintain a transparent supply chain free from human rights abuses by maintaining an active program of evaluating the potential for abuses, requiring vendors to agree to comply with the laws of the countries in which they do business, maintaining accountability for employees or vendors failing to meet our standards, and providing employees training on mitigating the risk of human rights abuses in the supply chain.

VENDOR PARTNERSHIP GUIDE

As a condition to doing business with Sport Chalet, vendors must agree to comply with the laws of the countries in which they do business, including laws against child labor, slavery or human trafficking, and unsafe working conditions. This condition is included in our Vendor Partnership Guide which is incorporated into our standard terms and conditions governing every purchase order issued by Sport Chalet. In addition, we require vendors periodically to acknowledge in writing their understanding of our policy requiring full compliance with all applicable laws.

Sport Chalet reserves the right to inspect factories for compliance with applicable laws and to suspend or terminate the relationship with any vendor for a failure to comply with applicable laws or to cooperate in any such inspection.

Vendor Partnership Guide

SUPPLY CHAIN TRANSPARENCY

Overview

Sport Chalet is a leading operator of full service, specialty sporting goods stores offering a broad assortment of brand name sporting goods equipment, apparel and footwear. Our stores offer over 50 services for the sports enthusiast, including climbing, backcountry skiing, ski mountaineering, avalanche education, and mountain trekking instruction, car rack installation, snowboard and ski rental and repair, Scuba training and certification, Scuba boat charters, team sales, custom golf club fitting, racquet stringing, and bicycle tune-up and repair at its store locations. In addition, we have a Team Sales Division and an online store at sportchalet.com.

Our strategy is to be first to market with performance, technology and lifestyle merchandise for the serious sports enthusiast. Our merchandise assortment includes traditional sporting goods merchandise (e.g., footwear, apparel and other general athletic merchandise) and core specialty merchandise such as snowboarding, skateboarding, mountaineering and Scuba.

We purchase merchandise from over 1,000 vendors. Our largest vendor, Nike, Inc., accounts for approximately 10% of our total inventory purchases, and our ten largest vendors collectively account for approximately 40% of our total purchases.

In general, we believe that our emphasis on higher end specialty items produced by the world's leading brand names helps to ensure that our product supply chain is relatively free of human rights abuses compared with other sporting goods retailers who are more dependent on value pricing.

Policy

Sport Chalet is committed to sourcing its products only from vendors who have agreed to operate their supply chains in a socially responsible manner. In particular, Sport Chalet condemns the use of child labor, slavery and human trafficking.

Evaluation of Supply Chain

We evaluate of our product supply chain to determine the likelihood that our direct product supply chain is tainted by human rights abuses, including child labor, slavery and human trafficking, in light of the specific circumstances of our operations. This assessment segments our vendors into a limited number of risk weighted categories based on such factors as country of origin, type of product produced, publicly available information concerning the vendor's human rights record, reports of human rights organizations, and the annual dollar value of purchases. Based upon this evaluation, we determined that we have no principal vendor who presents a substantial likelihood of child labor, slavery or human trafficking. This evaluation was conducted solely by our own product sourcing experts and not by a third party.

Vendor Audits

It is a condition to doing business with Sport Chalet that each vendor agree to comply with the laws of the countries in which they do business (including laws against child labor, slavery or human trafficking, and unsafe working conditions). This condition is included in our Vendor Partnership Guide which is incorporated into our standard terms and conditions governing every purchase order issued by us. In addition, we require each vendor periodically to acknowledge in writing its understanding of our policy requiring full compliance with all applicable laws. In developing effective verification mechanisms, we strongly encourage each vendor to implement an anonymous employee grievance procedure administered by an independent third party.

We reserve the right to inspect factories for compliance with applicable laws and to suspend or terminate the relationship with any vendor for a failure to comply with applicable laws or to cooperate in any such inspection. In general, we will not conduct audits of vendor compliance using independent third parties or unannounced inspections because we do not believe that the substantial costs of such audits or inspections would provide meaningful protection for workers within our supply chain which is comprised primarily of the world's leading brand names.

Certification of Compliance with Laws

We require vendors periodically to acknowledge in writing their understanding of our policy requiring full compliance with all applicable laws (including laws against child labor, slavery or human trafficking, and unsafe working conditions).

Internal Accountability

We reserve the right to suspend or terminate the relationship with any vendor for a failure to comply with applicable laws or to cooperate in any inspection of its factories.

Training

We provide our employees who have direct responsibility for supply chain management, training on our human rights policies, including our policies regarding slavery and human trafficking, particularly with respect to mitigating the risk of human rights abuse within the product supply chain.