By Fiona Ness on Thu 22 May 2014 in Topical
Game were one of many companies who went into administration back in 2012. However, they are now seeing a staggering turnaround.
Following a re-brand to Game Digital, investments in their online offerings, and restructuring, they are now just short of re-entering the FTSE 250 with a market share of £400 million.
Prior to being forced into administration Game’s difficulties were centered around online and supermarket competition, expensive stores, and a lack of new product launches meaning suppliers withdrew their contracts. At the time, Game’s lack of strategy in these areas were the nail in the coffin.
Post administration, Game seem to have combated all of their initial problems. Reducing stores from 814 in 2012 to 560 and staff from 9000 to 4800 was part of their restructure. However, they have also made significant investments in omni-channel offerings with the aim of a more customer experience focused model, better commitment to suppliers, and strengthened business processes. This omni-channel approach has been an obvious advantage for a variety of retailers, and is expected to be the clear reason behind Game’s successful re-launch.
However, Game have not taken the foundations required for these developments for granted. This has led to a heavy investment in their CRM and infrastructure. Which will ensure that they are able to successfully offer an omni-channel experience and continue to develop as and when is necessary, an option, it would seem, they failed to consider in the past.
All in all, the restructure and refocus Game has gone through over the last 2 years has helped identify their place in an ever-changing retail environment.
Non-executive chairman of Game, David Hamid, has described Game’s turnaround as “remarkable”. Although now that they have been able to strengthen Game in the UK it is expected that their “ground-breaking digital strategy” will underpin the business for many years to come.In addition to Game’s predicted market share of £400 million (leaving them just outside the FTSE 250), it is predicted that by 2016 Game could be worth as much as £5.8 billion, showing an annual growth rate of 7%. Surely this proves that their investment in online channels and improving their CRM and infrastructure will continue to pay off into the future.