According to the new Games Workshop annual report, covering the fiscal year ending June 2, 2002, the company continues to struggle with its independent retailer business in the Americas, saying of its business in that channel, '...[I]t has been hard work maintaining momentum during the year.'   This is the continuation of a trend that that was first noted by GW in its mid-year report six months ago, and is a reflection of dissatisfaction with the company felt by many independent retailers (see 'Retailers Send Joint Statement to Games Workshop'). 

In response to this problem, Games Workshop appears to be stressing the opening of new stores (it opened six new stores in the Americas in its past fiscal year, bringing the total to 43) to a greater degree, '...to attract new gamers into the Hobby, and to establish a more appropriate balance between our own stores and independent retailer customer base.'  A second strategy is continued development of sales teams that work with independent retailers.  In the UK, where its own stores account for 69% of sales, GW does '...not expect to grow significantly the number of stores...in the future,' which may indicate the target mix of sales through company stores and independent retailers.  But worldwide GW sales were up the same rate through independent retailers as through its own stores, indicating that with a growing pie there's enough business for both channels to grow significantly. 

One channel that did not grow as quickly was the mail order/Internet sales channel, which grew at a slower 8%.  The reason will come as good news to brick and mortar retailers. 'The increase in direct sales was slower due in part to a deliberate reassertion of our no-discounting policy to counter some discount creep that had occurred in some territories.'