Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And our first question comes from Ian Corydon from B. Riley & Company.
Ian Corydon - B. Riley & Company
Thanks, just a couple of questions. Jim in your commentary you have mentioned efforts to take share in CD and DVD, and I think to get more vendor support I might have got that wrong. And you said, you are having some success there. Could you just give a little bit more detail on that?
Jim Litwak
Sure, particularly in regards to our strength in catalogue, we saw in both CD and DVD in Q4 that we were able to take market share and we outperformed the industry though that performance in total for both of us in the industry was certainly lack luster. But we see even greater success this year, as you see competitions window, as you see people reevaluate the amount of product they are carrying in the stores. We think that there is some upside there as well.
Secondly, we continue to work very aggressively with both the CD, both the music and movie vendors in regards to developing strong promotional opportunities. Many of which were successful in Q4.
Ian Corydon - B. Riley & Company
Okay. On the video game side, its sounds like you are trying to go after that maybe in a bigger way. I believe you pulled back last year. We already got a strong competitor in the mall. Could you talk about, what you are going to be doing in video games? And then, last question is on other new product categories that you might add, what stage you are at in terms of testing and implementing new product?
Jim Litwak
Okay. In regards to the game opportunity, frankly we reduced the store count because we saw that the stores we took it out just were not performing to level of that we would like. And we wanted to just get this business cleaned up and focus on our good performing stores, lay a foundation and then be able to consider whether we want to expand back.
We tested on visual presentation we tested it in Q4 in the early stages of this year. We have seen great results on that and certainly outperforming where we were before considerably, and now we are rolling that out to 347 stores that we have games in, and we are also moving locations of games where before they may have been in a secondary location they are going to move from primary location.
- To read the full transcript on Seeking Alpha, click here »
