GameStop 2011 Annual Report Download - page 10

Download and view the complete annual report

Please find page 10 of the 2011 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 116

  • 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

E-Commerce We took numerous steps to integrate e-commerce with other parts of the business and expand our reach. In July,
we launched www.GameStop.co.uk, giving consumers in the U.K. more choices and exclusive content; additionally, these unique
offerings contributed to an increase in online transactions across our global e-commerce network.
In the U.S., we launched a mobile e-commerce site and an iPhone® app, both giving customers the ability to purchase online
and pick up in store via the popular PickUp@Store™ program. Launched in November 2010, the program grew 150 percent
in 2011 and facilitated more than 550,000 customer requests. PickUp@Store marries the speed and convenience of an online
purchase with the peace of mind of purchasing in store and receiving recommendations from a GameStop associate.
Digital Console Gaming Our knowledgeable store associates also have been crucial in driving customer awareness of DLC. Since
launching in-store DLC sales in 2010, we have achieved overall revenue growth in the category of 315 percent – with more than
95 percent of those sales initiated in stores. By launching DLC as we do a new game, we are able to reach a broader audience and
leverage our multiple channels to educate both hardcore and casual gamers on the value DLC offers. Call of Duty® ELITE is a great
illustration of this, with more than 600,000 Call of Duty ELITE memberships sold by GameStop in 2011.
Given the success of DLC, GameStop pursued cloud gaming, another facet of digital console gaming. With the March 2011
acquisition of Spawn Labs, we obtained the technology to stream full console games to customers. Following the acquisition, we
launched a small private beta and conducted extensive consumer research to develop a go-to-market strategy. In the fall, we built six
data centers across the U.S. to support a national private beta that will ultimately lead to the launch of the service to the public in 2012.
Digital PC Gaming In May, GameStop acquired Impulse, adding a digital PC game distribution platform to our multichannel
offerings. With the launch of the rebranded GameStop PC Download App in June, we added the ability to deliver digital PC
games directly to customers. Customers can purchase digital PC games in a GameStop store or on www.GameStop.com, using a
variety of payment options including trade-in credit. Throughout the year, we further integrated PC downloads with other aspects
of the business, awarding PowerUp Rewards points and accepting GameStop gift cards for digital PC game purchases. Since
acquiring Impulse, we have expanded the PC download catalog by 34 percent to more than 1,500 games.
8
2011 ANNUAL REPORT