NEWS ANALYSIS: ASDA’S SECOND-HAND PLAN
that some of our direct competitors were planning pre-owned trials, so yes, we did feel we had to introduce this service for our customers.” If, as Thompson says, the main aim is to facilitate more new game sales, then why can consumers spend their trade-in money on anything in the store? Surely that ruins the point?
Thompson says that much of it is down to offering what the competition is doing. Tesco, Argos and Best Buy all let customers trade in against anything in store. And he adds that publisher’s do understand the retailer’s position. “We have been open and honest with publishers from the start of our trials, and having world class supplier relationships has always been really important to me,” he says. “With Best Buy, Argos and Tesco all entering the pre-owned market before Asda this year, we have had to make a move to protect our long term games business, and I think that publishers understand that. I genuinely believe that we can use trade-in to grow our market share on new release titles, which will benefit our suppliers.”
THAT’S ASDA PRICE Indeed, Asda is marketing pre- owned as a means to get new games for cheap. Its debut offer saw FIFA 11cut to 97p if customers traded a recently-released title. And Thompson says more is to come. “We obviously launched with a bang with the FIFA 11deal and we plan to offer more great deals on the big titles this Christmas,” he explains. “We’re also planning online, outdoor and press campaigns.” Yet, for all the talk of helping customers, there may be another reason for Asda’s pre-owned invasion. The Wal-Mart-owned chain has invested millions in its games department, and now the firm is a
great games retailer in its own right – it even won the MCV Award for best supermarket this year and now boasts a double-digit share of the games market.
But despite all the success in growing market share, the big bosses at Asda HQ might be wondering when they’re going to start seeing some profit to justify the investment. And the onus is on Thompson and his team to start generating some. “At Asda we strive to save our customers money every day, however, we have to strike the right balance between value for our customers and profitability for the business,” says Thompson.
We have to strike the balance between value for our customers and profitability for Asda. Andrew Thompson, Asda
“
“Trade-in games offer another route for customers to save even more money every day, and I feel it is a real recession buster.” Perhaps that’s reason enough. It’s been a tough year for games retail, people are spending less and the High Street environment is becoming even more competitive than ever.
And what’s more, Thompson and his team aren’t just entertainment buyers for a grocer, they are games specialists with gaming backgrounds. These guys want to keep up with their rivals and want to keep growing their market share. “It has been a tough year for everyone in games retail but I am
really pleased with our share performance,” concludes Thompson. “We have continually outperformed the market which is testament to the foundations laid by Duncan Cross, and the great work that the games buying team have delivered over the year.” It has become an MCVcliché, but pre-owned is not going anywhere. All major games retailers sell second-hand games (see Pre- owned Players) – and if Asda wants to continue to be one it has to do it, too. Whether publishers like it or not.
The quality of Asda’s pre- owned range is comparable to what specialist retailers are offering
97p
The price of FIFA 11 in Asda last month if consumers traded in Halo: Reach
BEST BUY
The US big box retailer entered the UK this year. Consumers can trade-in games against anything in Best Buy’s giant shops, including TVs and washing machines. However, there are currently just six stores nationwide.
www.mcvuk.com ARGOS
Since July this year all Argos stores are letting customers trade in around 250 different games for gift cards that can be spent on any product. A full list of titles can be found on the catalogue retailer’s website.
TESCO Over 60 Tesco stores now accept used video games, and consumers can spend their money on anything in-store. The firm has invested in technology to ensure the experience is as easy for the customer as possible.
THE INDEPENDENTS
Indie giants Grainger Games and CHIPS both sell a large number of used games, while an ever-growing number of indies are no-longer selling new games and focusing entirely on the pre-owned games market.
November 12th 2010 21
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92