GameStop 2004 Annual Report Download - page 23

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Vendors
We purchase substantially all of our new products from approximately 85 manufacturers and software
publishers and approximately Ñve distributors. Purchases from the top ten vendors accounted for approxi-
mately 71% of our new product purchases in Ñscal 2004. Only Electronic Arts, Nintendo and Microsoft
(which accounted for 14%, 13% and 12%, respectively) individually accounted for more than 10% of our new
product purchases during Ñscal 2004. We have established price protections and return privileges with our
primary vendors in order to reduce the risk of inventory obsolescence. In addition, we have no purchase
contracts with trade vendors and conduct business on an order-by-order basis, a practice that is typical
throughout the industry. We believe that maintaining and strengthening our long-term relationships with our
vendors is essential to our operations and continued expansion. We believe that we have very good relations
with our vendors.
Competition
The electronic game industry is intensely competitive and subject to rapid changes in consumer
preferences and frequent new product introductions. We compete with mass merchants and regional chains,
including Wal-Mart and Target; other video game and PC software specialty stores located in malls and other
locations, including Electronics Boutique; toy retail chains, including Toys ""R'' Us; mail-order businesses;
catalogs; direct sales by software publishers; online retailers; and computer product and consumer electronics
stores, including Best Buy and Circuit City. In addition, video games are available for rental from many video
stores, some of whom, like Hollywood Entertainment and Blockbuster, have increased the availability of video
game products for sale. Video game products may also be distributed through other methods which may
emerge in the future. We also compete with sellers of used video game products. Additionally, we compete
with other forms of entertainment activities, including movies, television, theater, sporting events and family
entertainment centers.
Seasonality
Our business, like that of many specialty retailers, is seasonal, with the major portion of our sales and
operating proÑt realized during the fourth Ñscal quarter, which includes the holiday selling season. During
Ñscal 2004, we generated approximately 38% of our sales and approximately 56% of our operating earnings
during the fourth quarter. Any adverse trend in sales during the holiday selling season could lower our results
of operations for the fourth quarter and the entire year.
Trademarks
We have a number of trademarks and servicemarks, including ""GameStop,'' ""Game Informer,''
""Babbage's'' and ""FuncoLand,'' all of which have been registered by us with the United States Patent and
Trademark OÇce. We maintain a policy of pursuing registration of our principal marks and opposing any
infringement of our marks.
Employees
We have approximately 2,500 full-time salaried, 2,300 full-time hourly and between 12,000 and
18,000 part-time hourly employees depending on the time of year. Fluctuation in the number of part-time
hourly employees is due to the seasonality of the electronic game industry. We believe that our relationship
with our employees is excellent. None of our employees is represented by a labor union or is a member of a
collective bargaining unit.
Available Information
We make available on our website (http://www.gamestop.com), under ""Investor Relations Ì SEC
Filings,'' free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K, and amendments to those reports as soon as reasonably practicable after we electronically Ñle or
furnish such material with the SEC. In addition, the Company's Code of Standards, Ethics and Conduct is
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