GameStop Revamps Loyalty Efforts

  • March 24, 2010 at 4:34 PM EDT
  • By Mike Santos
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Video game retailer GameStop said it will begin testing a revamped loyalty program in May. It will also expand its downloadable offerings, according to a March 18 earnings call for Q4 2009.

As part of the revamp, the video game retailer will integrate elements of the MegaCard loyalty program by MicroMania, a French video game retailer purchased by Game Stop in 2008. GameStop now runs a loyalty program called Edge. GameStop recently surveyed its customers to see how a loyalty program could improve its business, Raines said on the earnings call. The company will test the initiative at first in four markets, which Olivera would not reveal. The program’s budget will come from $125 million set aside by the company for “improvements, information system support, refurbishment upgrades, distribution expansion and loyalty program enhancements” in fiscal 2010, according to a statement.

During the call, GameStop execs said that point cards, digital game downloads and other digital products and services generated $170 million in sales for the company last year, representing a 55% growth rate over 2008.

GameStop will promote downloadable content through test kiosks in 30 stores this year. GameStop’s total sales for Q4 2009 increased 0.9% to $3.52 billion from $3.49 billion the prior year. For fiscal year 2009, total sales increased 3.1% to $9.08 billion from $8.81 billion for FY 2008. Comparable store sales, however, decreased 7.9% for both the quarter and the year, which executives attributed partially to reduced product prices, especially for the Nintendo Wii and Sony Playstation 3.

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