We are spending a lot of time on the collectibles business driving global best practices, buying synergies, developing standalone collectible stores and hybrids, as well as integrating into the enterprise. On a positive note, Raines talked about the company’s collectible business, “which hit the high-end of our revenue guidance at $494 million. And looking more broadly across the general retail spectrum it was obviously a transformational holiday season for a number of hard-line retailers.” Some have argued that this decline was caused by title fatigue, others have argued for a need for new consoles. Console upgrades were also not as meaningful as we had hoped. “That decline reflected the impact of all the below-cost discounts and complimentary gift cards that we saw from Black Friday that ultimately carried through the holiday season. “The 2016 holiday was also more promotional than prior ones with average hardware prices down 15 percent versus prior years,” he explained. Most publishers began discounting titles much earlier than previous years, leading to a steep decline in retail pricing, Raines said. However, according to NPD, excluding Pokemon, the top eight physical software titles actually declined over 40 percent from October to December compared to the top eight release in the same timeframe in 2015.” “Experts were still expecting a 5 percent decline for the year. “Our internal model, which aggregates PwC, DSC and IDG, forecast only a 5 percent decline even as latest September,” Raines said. “We encountered stiff headwinds as we completed the third year of the console cycle,” Raines said.Īs a result, the physical games category declined 15 percent and GameStop brand lost a “small amount” of market share during the holiday period due to deep discounting. Historically, growth in PowerUp Rewards brings us great benefits and, if you are a PowerUp Pro member, you know that the pro-gaming pass pro-days and exclusive offers are a few examples of new value for your membership.”īut, 2016 was a more challenging year than GameStop officials forecast. “As a result, we grew our membership based in 2016 and they are rewarding us with greater frequency and larger average purchases. “We have recently strengthened our PowerUp Pro program with ritual rewards,” Raines said. What’s more, Raines noted, PowerUp Rewards members spend roughly six times more than nonmembers, and three times more than basic members. “In 2016, our PowerUp members drove 71 percent of our sales volume in the United States, so they are very important to us.” “GameStop has an extensive loyalty CRM program known as PowerUp Rewards,” GameStop CEO Paul Raines said during the company’s recent fourth-quarter earnings call. I forgot when exactly it started, but you weren't always able to use the monthly coupon on digital credit online Read this for an in-depth explanationĪnd yes, the order does matter, you have to use the code in-store first, then online afterwards, just make sure you copied/wrote down/applied the code before using it in-store.Despite a challenging fiscal 2016, GameStop’s PowerUp Rewards loyalty program continues to be an invaluable asset. I ain't no tech wiz, but w/ all the issues I've seen regarding Gamestop's website, it seems that all these roundabout ways of fixing the loophole is the best they can come up with lol This seems like their compromise towards that, in that they'll continue to allow us to use the coupons on digital credit, but now this way they guarantee that no one is getting anything for free.Īs for them focusing on specifically fixing just the double dip loophole, honestly, if they were capable of that by now, they probably would've done so. They already tried last year to straight up remove the ability to buy gaming credit with the coupon, but reversed course on that due to backlash. While yea, we should understand it can always go away whenever, I disagree, if anything this indicates the opposite.
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