GameStop 2003 Annual Report Download - page 22

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Table of Contents
Accessories and Other Products.Video game accessories consist primarily of controllers, memory cards and other add-ons. PC entertainment accessories consist
primarily of video cards, joysticks and mice. We also carry strategy guides and magazines, as well as character-related merchandise, including action figures and
trading cards. We carry over 750 SKUs of accessories and other products. In general, this category has higher margins than new video game and PC entertainment
products.
The following table sets forth sales mix, expressed as a percentage of net sales for the periods indicated:
52 Weeks Ended 52 Weeks Ended
January 31, February 1,
2004 2003
Video Games:*
Video Game Software 63% 58%
Video Game Hardware 16 19
Video Game Accessories 12 12
PC Software 6 7
PC Accessories and Other Products 3 4
* Includes new and used merchandise.
Store Operations
As of January 31, 2004, we operated 1,514 stores, primarily under the GameStop name. Each of our stores typically carries over 5,000 SKUs. We design our stores
to provide an electronic gaming atmosphere with an engaging and visually-captivating layout. Our stores are equipped with several video game sampling areas, which
provide our customers the opportunity to play games before purchase, as well as equipment to play video game clips. We use store configuration, in-store signage and
product demonstrations to produce marketing opportunities both for our vendors and for us.
Store Formats
• Strip Center Stores.Our strip center stores, which average approximately 1,500 square feet, carry a balanced mix of new and used video game products and PC
entertainment software. As of January 31, 2004, we operated 982 strip center stores in the United States, Ireland and Puerto Rico. Our strip center stores are
located in both high traffic “power strip centers” and local neighborhood strip centers, primarily in major metropolitan areas. These locations provide visibility,
easy access and high frequency of visits. We target strip centers that are conveniently located, have a mass merchant or supermarket anchor tenant and have a
high volume of customers.
• Mall-Based Stores.Our mall-based stores, which average approximately 1,200 square feet, carry primarily new video game products and PC entertainment
software, as well as used video game products. As of January 31, 2004, we operated 532 mall stores in high traffic shopping malls in targeted locations
throughout the United States, Puerto Rico and Guam.
Site Selection and Locations
Site Selection.We have a dedicated staff of real estate personnel experienced in selecting store locations. Site selections for new stores are made after an extensive
review of demographic data and other information relating to market potential, competitor access and visibility, compatible nearby tenants, accessible parking, location
visibility, lease terms and the location of our other stores. Most of our stores are located in highly visible locations within malls and strip centers.
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