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GAME poised for strategic update

Retailer set to offer insight to investors on how it plans to "improve overall profitability"

The GAME Group will today host an analyst event in London in order to outline its plans to tackle some of the challenges that the firm faces as the industry moves online.

The key priorities include a marked increase in online revenues, multi-channel integration, better footfall conversion, and the maximisation of new revenue streams and payment options.

"Today is an important day for GAME as we set out our strategic direction for the business," explained CEO Ian Shepherd. "Importantly we will set out how we will invest behind our strategy and give clarity about how we will track delivery of our plans.

"Over the next three years we are confident that the delivery of our strategic goals will be profit enhancing. The activities announced today will increase our revenues from new and existing channels, which will improve overall profitability.

"The gross margin percentage will decrease as online and digital revenues become a larger part of our sales mix. In 2011/12 we anticipate there will be a margin impact of around 100 bps as we reposition our business to be truly multichannel.

"Across the three year period we expect our operating cost base and capital expenditure to be broadly in line with 2010/11. In the short term, we have chosen to invest nearly all of the £15m of cost savings we expected to achieve in 2011/12 to deliver on our strategic goals."

GAME's share price currently hovers around the 70 pence mark, roughly the mid-point of the range for the last six months.

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Phil Elliott