Game Group has set out plans to drive online sales and offer more deals to its loyalty card holders as part of a strategy to revive its fortunes.
The computer and games retailer, which operates 641 Game and Gamestation stores in the UK, announced a three-year plan to help it make “a step change” in online and digital sales, as more gamers download software from the internet rather than visiting shops to buy a games cartridge or CD.
Other aspects of its plan will see it accept different types of payment to help it appeal to more customers, convert more visitors to its stores into paying customers and send more marketing material to the estimated 15 million reward card holders on its database.
The company warned the change of strategy will see 1% eroded from its profit margin but said it will increase earnings over the three years.
Game expects to invest nearly all of the £15 million it will make through closing stores and other cost saving measures in its new plan.
Chief executive Ian Shepherd said: “The activities announced today will increase our revenues from new and existing channels, which will improve overall profitability.
“Over the next three years we are confident that the delivery of our strategic goals will be profit enhancing.”
Game, which made losses of £18.8 million in the first half of 2010, this month began selling downloadable games for Xbox 360 in 40 of its stores as part of a six month trial.
Shares were up 2% as investors cheered the news.
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