GameStop 2009 Annual Report Download - page 27

improve speed of fulfillment in both facilities. The technology used in the distribution centers allows for high-
volume receiving, distributions to stores and returns to vendors.
We distribute merchandise to our Canadian segment from two distribution centers in Brampton, Ontario. We
have a distribution center near Brisbane, Australia which supports our Australian operations and a small distribution
facility in New Zealand which supports the stores in New Zealand. European segment operations are supported by
six regionally-located distribution centers in Milan, Italy; Memmingen, Germany; Arlov, Sweden; Valencia, Spain;
Dublin, Ireland; and Paris, France. We continue to invest in state-of-the-art facilities in our distribution centers as
the distribution volume, number of stores supported and returns on such investments permit.
Management Information Systems. Our proprietary inventory management systems and point-of-sale tech-
nology show daily sales and in-store stock by title by store. Our systems use this data to automatically generate
replenishment shipments to each store from our distribution centers, enabling each store to carry a merchandise
assortment uniquely tailored to its own sales mix and rate of sale. Our call lists and reservation system also provide
our buying staff with information to determine order size and inventory management for store-by-store inventory
allocation. We constantly review and edit our merchandise categories with the objective of ensuring that inventory is
up-to-date and meets customer needs.
To support most of our operations, we use a large-scale, Intel-based computing environment with a
state-of-the-art storage area network and a wired and wireless corporate network installed at our U.S. and regional
headquarters, and a secure, virtual private network to access and provide services to computing assets located in our
stores, distribution centers and satellite offices and to our mobile workforce. This strategy has proven to minimize
initial outlay of capital while allowing for flexibility and growth as operations expand. To support certain of our
international operations, we use a mid-range, scalable computing environment and a state-of-the-art storage area
network. Computing assets and our mobile workforce around the globe access this environment via a secure, virtual
private network. Regional communication links exist to each of our distribution centers and offices in international
locations with connectivity to our U.S. data center as required by our international, distributed applications.
Our in-store point-of-sale system enables us to efficiently manage in-store transactions. This proprietary
point-of-sale system has been enhanced to facilitate trade-in transactions, including automatic look-up of trade-in
prices and printing of machine-readable bar codes to facilitate in-store restocking of used video games. In addition,
our central database of all used video game products allows us to actively manage the pricing and product
availability of our used video game products across our store base and reallocate our used video game products as
necessary.
Field Management and Staff
Each of our stores employs, on average, one manager, one assistant manager and between two and ten sales
associates, many of whom are part-time employees. Each store manager is responsible for managing their personnel
and the economic performance of their store. We have cultivated a work environment that attracts employees who
are actively interested in electronic games. We seek to hire and retain employees who know and enjoy working with
our products so that they are better able to assist customers. To encourage them to sell the full range of our products
and to maximize our profitability, we provide our employees with targeted incentive programs to drive overall sales
and sales of higher margin products. In certain locations, we also provide certain employees with the opportunity to
take home and try new video games, which enables them to better discuss those games with our customers. In
addition, employees are casually dressed to encourage customer access and increase the “game-oriented” focus of
the stores.
Our stores communicate with our corporate offices daily via e-mail. This e-mail allows for better tracking of
trends in upcoming titles, competitor strategies and in-stock inventory positions. In addition, this communication
allows title selection in each store to be continuously updated and tailored to reflect the tastes and buying patterns of
the store’s local market. These communications also give field management access to relevant inventory levels and
loss prevention information. We have invested in significant management training programs for our store managers
and our district managers to enhance their business management skills. We also sponsor annual store managers’
conferences at which we operate an intense educational training program to provide our employees with
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