GameStop 2006 Annual Report Download - page 26

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International
Number
of Stores
Germany.............................................................. 95
Ireland ............................................................... 35
Italy ................................................................. 157
Norway .............................................................. 12
Spain ................................................................ 101
Sweden .............................................................. 46
Switzerland............................................................ 8
United Kingdom ........................................................ 6
Sub-total for Europe ................................................... 493
Sub-total for International ............................................. 979
Total stores ........................................................ 4,778
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 United States and Ireland stores. For its February
2007 issue, the magazine had approximately 2.7 million paid subscriptions. According to Mediaweek magazine,
Game Informer is the 23rd 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 2005, we entered into an arrangement with Barnes & Noble under which
www.gamestop.com is the exclusive specialty video game retailer listed on www.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.
On a global basis, 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.
In the last three years, as part of our brand-building efforts and targeted growth strategies, we expanded our
advertising and promotional activities 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 brand awareness and store openings. We plan to
continue these efforts in fiscal 2007.
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