Game more than doubles profits after a year of strong customer engagement
Game has more than doubled its profits in a year that saw it engage with its customers across channels, signing up a million more people to is loyalty programmes in the UK and Spain – which now have more than 17m members – and doubling its app users to more than 1.5m.
The multichannel gaming retailer, a Model retailer in InternetRetailing research the IRUK500
, is also catering for customers in its community, with store-based events that include early access 'lock-ins', launch partners, tournaments and fundraising events as well as midnight game launches. In the year ahead, it plans to trial other ways of using its retail space and will also relaunch its YouTube channel as part of investment in social and events. More space is being given over to digital products both within the store and online.
The update came as the retailer reported revenue of £866.6m in the year to July 25
, 0.6% up on the same time last year. Pre-tax profits of £25.8m were 253.4% ahead of last time.
Over the last year Game has upgraded its website and says monthly website traffic has grown since then by 20%. Today it said it planned further capital investment, including an upgrade to its mobile website and apps, to support its omnichannel growth and to futureproof its business in the light of structural changes across the market. These included, it said, the growth of eSports and gaming events. It bought Multiplay in March, enabling it to hold live gaming events for tens of thousands of gamers.
During its latest financial year Game launched click and collect in its stores and said it would introduce Collect+ in the coming year. "Combined with our Endless Range in store proposition," it said, "[this] means customers can now order online or in store, for delivery to home, or to store." It also launched Game Marketplace. So far it has added more than 100 vendor partners, and 100,000 new products to its range. Improvements to its app have included the Scan It tool, which enables customers to bring images to life and learn from extended product information on their phone, using augmented reality technology.
“Over the last twelve months," said Martyn Gibbs, chief executive, "our customers and publisher partners have responded positively as we have driven forward our strategy, enhancing our customer and community engagement and broadening our offer beyond pure retail to the places and ways in which our customers play games.
“Looking forward, with the growth opportunities available, particularly in Multiplay, we are committed to growing our businesses and increasing our investment in both capital projects and our operating cost base. We believe we are well prepared for Black Friday and the peak Christmas season, with a strong, specialist customer offer across all product categories."