GameStop 2011 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 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

2011 ANNUAL REPORT
pre-owned inventory management based on each store’s unique sales characteristics. The result is a store-level pre-owned
merchandise assortment that more closely matches customer demands.
In addition to building awareness of pre-owned merchandise, this approach also introduced more customers to our trade-in
program. In 2011, we returned more than $1.2 billion to customers – dollars that were used to make additional GameStop
purchases. Our state-of-the-art refurbishment facility processed more than 17 million software units and one million hardware
units in 2011, recycling nearly three million pounds of electronic waste in the process.
PowerUp RewardsTM Our PowerUp Rewards loyalty
program celebrated its one-year anniversary in 2011 and
closed the year with 16 million members in the U.S. By
reaching customers through multiple channels – our stores,
the GameStop PC Download App, www.GameStop.com,
Kongregate.com and Game Informer – PowerUp Rewards
continues to be successful in increasing brand loyalty, aquiring
new customers and driving market share growth. The
program has been embraced by customers and enhances the GameStop experience with unique gaming-centric offerings. In
addition to targeted promotions based on an individual’s gaming preferences, we delivered unique experiences and prizes via
monthly Epic Reward Giveaways™. For example, we awarded the fi rst ever real life Mario Kart and the chance to appear as a
recurring character in the next installment of Assassin’s Creed.
As a result of these compelling offers, PowerUp Rewards members are engaging with GameStop in signifi cant ways. Members are shopping
with us fi ve and a half times more often than nonmembers and accounted for 60 percent of total U.S. purchases in 2011. The program has
also driven Game Informer Digital subscriptions to more than one million, making it one of the world’s largest digital magazines.
PowerUp Rewards also serves as the foundation for the most unique sales transfer process in retailing. Using the data gathered
through the program, we are able to identify and move customers from a closing store to other stores within that specifi c market.
Transferring sales in this manner has been successfully increasing profi tability and would not be possible without PowerUp Rewards.
7