NEWS ANALYSIS: GAME 22 MCV 08/10/10
mortar, but it doesn’t have to be that way.” But multi-channel doesn’t just mean
growing the websites and hoping for the best. “We want to bring online and retail together – use the best of the web in- store and use the site as a driver for in- store physical sales. The growth we can unlock from that is significant.”
THE TRANSITION Shepherd doesn’t want to go on record about exactly how this physical/online hybrid model works. It’s easy to imagine the kind of
initiatives, however you don’t even have to do that. The most recent edicts from chairman Peter Lewis to shareholders talks of “changes to the look and feel of our stores, including more interactive product demonstrations and additional products”. Shepherd will offer some further
details: “Going on our current strengths – the expert people in our stores and strong supplier relationships – and augmenting that with a strong multi- channel approach and strong CRM takes us down the road of looking at how the in-store experience and technology in- store changes.” GAME and Gamestation, he adds, still
have a job to do as specialists on the High Street – the increasing depth of what games can offer demands the right kind of independent advice for consumers, after all. “We are making sure the experience
we offer delivers on the promise of being a specialist. “We have a number of current
strengths that are immensely powerful – foremost is our people in the stores, they are very passionate and we always get great feedback about the store managers and staff being very passionate and knowledgeable. That’s a great position from which to start.”
HEAVY LIFTING Shepherd doesn’t get touchy-feely for too long. He credits GAME’s “rigorous focus on costs and cash” that has meant savings on operational costs and savings, real improvements from a cash flow point of view. “If you’re in a tough market you have
to be very agile fiscally, and I think we have done that well,” Shepherd says. Plus there’s that recently-finalised
reorganisation of the commercial team still to announce, and a number of nitty- gritty behind-the-scenes things which have gone on to help improve GAME. There’s been, Shepherd says, “a lot of
heavy lifting” for the unsexy, but important stuff. Investment in IT capabilities, which means “replatforming our reward card” and “rebuilding the underpinning of our web and in-store sales”. Hardly stuff that makes the front
page on its own – but important steps for GAME’s health. “When you put that all together we
are very well prepared with a lot more capability going into 2011 – that will help us unlock a lot of the underappreciated aspects of the business. We will certainly
arrive next year in these particular circumstances just as the hard work comes to fruition and we will bring to market a lot of very commercial ideas.”
BRIGHT FUTURE So, no bold proclamations. But not bad for just 90 days work. Previously, Shepherd was responsible
for Vodafone’s retail redesign and, as UK commercial director, led a division with over £3bn in revenue. His responsibility there covered 400
stores and 2,000 staff, the product and brand marketing teams, plus online sales and mobile web. He knows what he’s doing. And he’s keen to talk sense about the
market, acknowledging the challenges, but nevertheless optimistic. Certainly, the mood at GAME Group’s annual Gamefest conference for staff
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GAME’S DIGITAL PATH
WHILE the Group has forged on with online initiatives, such as iPhone Apps and things like beta social network GamesNation, Shepherd’s view on the transition to digital is slow and steady, but upbeat.
“I am deeply conflicted
over the digital download space,” he says.
“On the one hand I look at the industry and think ‘Yes, it’s overblown as a concept’. The idea we will switch overnight to a market that is just digital downloads is clearly farfetched. That comes down to the fact that yes, a customer wants to own a physical product. All the suveys and polls tell us that boxed product will be here for a long time. “But the flipside of it is that digital is an important part of the industry, it’s growing over time and is genuinely exciting. “Is digital a big cloud on the horizon for GAME Group? That’s not the case at all. When industries go online, offering goods in that space is still retailing – you’re just doing it in a different place. “In the end the GAME
business has a lot of strong strong relationships – like our Reward Card – which means we will succeed in the digital world. As the digital world comes into our market place we will do really well out of it.”
two weeks ago was steely and determined, but still full of energy. Adds Shepherd: “When you look at
In 2011 we will unlock a lot of the
underappreciated aspects of this business.
Ian Shepherd, GAME ”
the results we have published they tell you important things. Firstly the context of a really difficult, challenged market. In terms of its shape, coming down from 2008, driven by the DS and Wii, moving into shrinkage in 2009 and then 2010… we’ve seen it fall, yes. The market is down 17 per cent year on year – it’s lost almost a fifth of its size. “We have gained market share in
every territory we operate in – there was a lot of commercial action that went into making sure that happened. If you’re going to be in a market that’s declining you may as well grow your market share. We have done that well. “But there are lots of positives for
GAME Group – and the games market is still big and vibrant, even now.”
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