GameStop 2005 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2005 GameStop annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

International
Australia ............................................................... 152
Austria ................................................................ 2
Canada ................................................................ 261
Denmark ............................................................... 23
Finland ................................................................ 1
Germany ............................................................... 77
Ireland................................................................. 28
Italy .................................................................. 102
New Zealand ............................................................ 25
Norway ................................................................ 10
Spain.................................................................. 123
Sweden ................................................................ 47
Switzerland ............................................................. 9
United Kingdom ......................................................... 6
Sub-total for International................................................. 866
Total stores ........................................................... 4,490
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 the Historical GameStop stores. We intend to begin
selling Game Informer in EB stores in early fiscal 2006. For its February 2006 issue, the magazine had
approximately 1.9 million paid subscriptions. According to Advertising Age magazine, Game Informer is the
38th largest consumer publication in the U.S. 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 electronic commerce web sites at www.gamestop.com and www.ebgames.com that allow our
customers to buy video game products and other merchandise on-line. The sites also offer 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
www.gamestop.com is the exclusive specialty video game retailer listed on Amazon.com. In 2005, we entered into
an arrangement with Barnes & Noble under which www.gamestop.com is the exclusive specialty video game
retailer listed on bn.com, Barnes & Noble’s e-commerce site.
Advertising
Our U.S. 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 pub-
lishers and accessory suppliers to promote their respective products. Generally, vendors agree to purchase
10