BUSINESS

General

GameStop Corp. (“GameStop,” “we,” “us,” “our,” or the “Company”), a Delaware corporation established in 1996, is the world'slargest video game omni-channel retailer, operates approximately 5,500 stores across 14 countries, and offers the best selectionof new and pre-owned video gaming consoles, accessories and video game titles, in both physical and digital formats. GameStopalso offers fans a wide variety of POP! vinyl figures, collectibles board games and more. Through GameStop's unique buy-sell-trade program, gamers can trade in video game consoles, games, and accessories, as well as consumer electronics for cash orin-store credit. Our consumer product network also includes www.gamestop.com andGame Informermagazine, the world'sleading print and digital video game publication. Our corporate office is located in Grapevine, Texas.Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Fiscal year 2019consisted of the 52 weeks ended on February 1, 2020 ("fiscal 2019"). Fiscal year 2018 consisted of the 52 weeks ended onFebruary 2, 2019 ("fiscal 2018") and fiscal year 2017 consisted of the 53 weeks ended on February 3, 2018 ("fiscal 2017")

Reportable Segments

We operate our business in four geographic segments:United States,Canada,Australia and Europe. We identified these segments based on a combination of geographic areas, which is the basis of how we manage the organization and analyze performance.Our omni-channel sales and profits are driven through both our physical stores and e-commerce properties. Each segmentconsists primarily of retail operations, with the significant majority of our stores engaged in the sale of new and pre-owned videogame systems, software and accessories (which we refer to as video game products). These products are substantially the sameregardless of geographic location, with the primary differences in merchandise carried being the timing of the release of newproducts or technologies in the various segments.As of February 1, 2020, we had a total of 5,509 stores across all of our segments; United States (3,642), Canada (299), Australia(426) and Europe (1,142). Our stores and e-commerce sites operate primarily under the names GameStopTM(“GameStop”), EBGamesTM(“EB Games”) and Micromania. Through all of our channels, we sell various types of digital products, including downloadable content, network points cards, prepaid digital, prepaid subscription cards and digitally downloadable software andalso sell collectible products.Our segments also include 88 pop culture themed stores selling collectibles, apparel, gadgets, electronics, toys and other retailproducts for technology enthusiasts and general consumers, with 55 collectibles stores in international markets operating underthe Zing Pop Culture brand and 33 stores in the United States operating under the ThinkGeek brand. Our brands also includeGame InformerTM(“Game Informer”) magazine, the world's leading print and digital video game publication.Financial information about our segments is included in Item 7, Management's Discussion and Analysis of Financial Conditionand Results of Operations, and Note 16, "Segment Information," of the notes to the consolidated financial statements, includedin Item 8, "Financial Statements and Supplementary Data" of this Annual Report on Form 10-K

Merchandise

We categorize our sale of products as follows:

Trade-In Program

We provide our customers with an opportunity to trade in their pre-owned video game products in our stores in exchange for cashor in-store credit which can be applied towards the purchase of other products. We believe this process drives our higher marketshare, particularly at launch. We resell these pre-owned video game products, which allows us to be one of the only suppliers ofprevious generation platforms and related video games. We also operate refurbishment centers in the United States, Canada,Australia and Europe, where defective video game products can be tested, repaired, relabeled, repackaged and redistributed forresale back to our stores.

Store Locations

Our retail stores are generally located in strip centers, shopping malls and pedestrian areas. These locations provide easy accessand high frequency of visits and, in the case of strip centers and high-traffic pedestrian stores, high visibility. We target strip centersthat are conveniently located, have a mass merchant or supermarket anchor tenant and have a high volume of customers.Domestic Locations.The table below sets forth the number and locations of our domestic stores included in the United Statessegment as of February 1, 2020:

Alabama 59 Kentucky 69 North Dakota 8 Alaska 6 Louisiana 61 Ohio 166 Arizona 72 Maine 10 Oklahoma 46 Arkansas 29 Maryland 77 Oregon 35 California 355 Massachusetts 69 Pennsylvania 168
Colorado 57 Michigan 95 Rhode Island 12 Connecticut 45 Minnesota 43 South Carolina 66 Delaware 15 Mississippi 44 South Dakota 10 Florida 231 Missouri 64 Tennessee 89 Georgia 125 Montana 10 Texas 357
Guam 2 Nebraska 20 Utah 27 Hawaii 14 Nevada 38 Vermont 4 Idaho 1 6New Hampshire 23 Virginia 113 Illinois 131 New Jersey 104 Washington 72 Indiana 88 New Mexico 25 West Virginia 29
Iowa 30 New York 193 Wisconsin 54 Kansas 30 North Carolina 129 Wyoming 7

PowerUp Rewards

We operate loyalty programs in each of the countries in which we operate our stores. Our U.S. loyalty program, called PowerUpRewardsTM("PowerUp Rewards"), had approximately 42.0 million members as of February 1, 2020, of which approximately 15.2million members have purchased or traded at GameStop in the past year. The PowerUp Rewards membership totals include 5.0million paying members. Our loyalty programs in our video game stores in the remaining countries had approximately 22.2 millionmembers as of February 1, 2020. Our loyalty programs generally offer our customers the ability to sign up for a free or paidmembership which gives our customers access to exclusive video game related rewards. The programs' paid membershipsgenerally include a subscription toGame Informermagazine and additional discounts on pre-owned merchandise in our stores.