I think the quarter that just ended is going to show very weak organic growth - in fact, they might even have negative comps. Good expansion, getting real estate at very competitive prices - but they still remain a totally undifferentiated, high cost retailer. Just not a good compensation. They fail to understand that 'the customer is in charge' these days. Assuming your Sales Counselors will add tremendous value, and compensating them in that manner, is death.
I would worry that without continuing the all out expansion campaign, the flaws in the model will catch up with them. Anyway you cut it, this is an undifferentiated model that is also the 'highest cost' model in this segement - not a good combination. And any retailer that compensates using a graduated commission system based on margin rates is doomed.