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Game Group investing £15m to become serious multichannel player

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Computer and video games giant Game Group has announced plans to invest £15m in building a truly multi-channel operation, geared up for massively increased online sales. The games specialist says it aims to triple annual online sales to £300m by 2013.

Ian Shepherd, group chief executive said the company would “deliver a step change in Game’s online revenues”, and that “seamless multichannel integration” in the next three years was the goal. The £15m will come from cost savings to be achieved in 2011/12 he said.

Shepherd said the plans “will increase our revenues from new and existing channels, which will improve overall profitability”. As part of the strategy, the gross margin percentage is expected to decrease as online and digital revenues become a larger part of the sales mix. The company will focus on driving increased conversion rates in all channels, and upping its CRM activities to deliver higher revenues over time.

Game Group operates two websites, and, and is in the process of developing them for “an upgraded customer experience” said Game communications director Simon Soffe.

“We have already moved Gamestation across to a new WebSphere platform and the Game site will switch onto that platform in the near future. That means we can offer a lot more functionality, such as more video content, new payment options and a broader community aspect which will be really important as we grow.”

Soffe said customers’ reaction to the updated Gamestation site had been very positive already. “On both sites we are involving the stores far more, so that each store has a community of its own online. We feel that to be truly multi-channel it’s important to get the stores involved at the web interface too, so that there’s a seamless experience for everyone across the channels.”

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