GameStop 2003 Annual Report Download - page 24

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Table of Contents
Number
State of Stores
Puerto Rico 11
Rhode Island 5
South Carolina 13
South Dakota 3
Tennessee 20
Texas 176
Utah 17
Vermont 1
Virginia 46
Washington 38
West Virginia 9
Wisconsin 20
1,514
Game Informer
We publish Game Informer, a monthly video game magazine featuring reviews of new title releases, tips and secrets about existing games and news regarding
current developments in the electronic game industry. The magazine is sold through subscription and through displays in our stores. For its February 2004 issue, the
magazine had more than 1,500,000 paid subscriptions. According to Advertising Age magazine, Game Informer had the largest increase in paid circulation among U.S.
consumer magazines in 2003, with an increase in excess of 45%. Game Informer revenues are also generated through the sale of advertising space. In addition, we offer
the GameStop loyalty card as a bonus with each paid subscription, providing our subscribers with a discount on selected merchandise.
E-Commerce
We operate an electronic commerce web site at www.gamestop.com that allows our customers to buy video game products and other merchandise on-line. The site
also offers customers information and content about available games, release dates for upcoming games, and access to store information, such as location and product
availability. In 2003, we entered into an arrangement with Amazon.com, Inc. under which we are the exclusive specialty video game retailer listed on Amazon.com.
Advertising
Our stores are primarily located in high traffic, high visibility areas of regional shopping malls and strip centers. Given the high foot traffic drawn past the stores
themselves, we use in-store marketing efforts such as window displays and “coming soon” signs to attract customers, as well as to promote used video game products
and subscriptions to our Game Informer magazine. Inside the stores, we feature selected products through the use of vendor displays, “coming soon” or preview videos,
signs, catalogs, point-of-purchase materials and end-cap displays. These advertising efforts are designed to increase the initial sales of new titles upon their release. We
receive cooperative advertising and market development funds from manufacturers, distributors, software publishers and accessory suppliers to promote their respective
products. Generally, vendors agree to purchase advertising space in one of our advertising vehicles. Once we run the advertising, the vendor pays to us an agreed
amount.
As part of our brand-building efforts and targeted growth strategies, in fiscal 2002 and again in fiscal 2003, we expanded our newspaper advertising in certain
targeted markets at certain key times of the year. In addition, we expanded our use of radio advertising in certain markets to promote store openings. We plan to
continue these efforts in fiscal 2004.
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