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. Despite a challenging fiscal 2016, GameStop’s PowerUp Rewards loyalty program continues to be an invaluable asset.
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