GameStop 2012 Annual Report Download - page 22

Expand our Mobile Business. In 2011, we began a new category of business which we refer to as Mobile.
We define the mobile category as buy-sell-trade of pre-owned mobile devices, including gaming tablets, new
tablets and related services and accessories for those devices. We take trades of select pre-owned electronics and
smartphones in all of our stores. We believe taking trades of these devices is a logical extension of our expertise
in buying, selling and trading of pre-owned video game products. We use our centralized refurbishment centers
in the U.S. and in certain of our international locations to refurbish these devices and then re-sell them in our
stores. As of February 2, 2013, we were selling select pre-owned electronics in all of our U.S. stores and on our
Web site at www.gamestop.com, and in a majority of stores in our international markets. We plan to continue to
drive awareness in our stores of this business and expand internationally in fiscal 2013. As the proliferation of
smart phones and tablets continues and those devices are increasingly used for playing digital games, the market
for such devices and the marketing of related games provide us opportunities to grow our revenues and profits.
Enhancing our Image as a Destination Location. Our stores and e-commerce sites serve as destination
locations for game players, mobile consumer electronics consumers and gift givers due to our broad selection of
products, compelling PowerUp Rewards offers, game-oriented environment, trade-in programs and unique
pricing proposition. We offer all major video game platforms, provide a broad assortment of new and pre-owned
video game products and popular mobile devices and offer a larger and more current selection of merchandise
than other retailers. In our stores, we provide a high level of customer service by hiring game enthusiasts and
providing them with ongoing sales training, as well as training in the latest technical and functional elements of
our products and services, making them the most knowledgeable associates in the video game retail market. Our
stores are equipped with several video game sampling areas, which provide our customers with the opportunity to
play games before purchase, as well as equipment to play video game clips.
Kongregate.com serves as a destination for gamers seeking the latest in online game play with over 65,000
games from more than 17,000 developers in a social environment in which gamers can connect with their friends
and compare achievements. Many of the favorite Kongregate games are available through the Kongregate app for
use on mobile devices.
Consistently Achieving High New Release Market Share. We focus marketing efforts and store associates
on driving the sale of new release video game products, both physical and digital. We employ a variety of rapid-
response distribution methods in our efforts to be the first-to-market and consistently in-stock for new physical
and digital video game products and PC entertainment software. This highly efficient distribution network is
essential, as a significant portion of a new title’s sales will be generated in the first few days and weeks following
its release. As the world’s largest retailer of video game products and PC entertainment software with a proven
capability to distribute new releases to our customers quickly and capture market share immediately following
new product launches, we believe we regularly receive larger allocations of popular new video game products
and PC entertainment software. On a daily basis, we actively monitor sales trends, customer reservations and
store manager feedback to ensure a high in-stock position for each store. To assist our customers in obtaining
immediate access to new releases, we offer our customers the opportunity to pre-order products in our stores or
through our Web sites prior to their release.
Investing in our Information Systems and Distribution Capabilities. We employ sophisticated and fully-
integrated inventory management, store-level point-of-sale and financial systems and state-of-the-art distribution
facilities. These systems enable us to maximize the efficiency of the flow of over 4,600 SKUs, improve store
efficiency, optimize store in-stock positions and carry a broad selection of inventory. Our proprietary inventory
management systems enable us to maximize sales of new release titles and avoid markdowns as titles mature and
utilize electronic point-of-sale equipment that provides corporate and regional headquarters with daily
information regarding store-level sales and available inventory levels to automatically generate replenishment
shipments to each store at least twice a week. In addition, our highly-customized inventory management systems
allow us to actively manage the pricing and product availability of our pre-owned video game products across
our store base and to reallocate our inventory as necessary. Our systems enable each store to carry a merchandise
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