Risk and risk management
Video games are now mainstream entertainment. It’s a £4 billion market in the UK alone. That’s good for business. But how does GAME Group manage the associated risks?
Risk – Staying ahead
First, we are operationally rock solid. We've built up long-term relationships with all key suppliers in the market. This means a good allocation of products for our customers and an ability to maximise new launches and generate great product deals.
In a market where launch dates are key, products must be available fast. Our distribution centres understand this. And our slick merchandising function ensures that right quantities of the right product reach their destination quickly - whether to store or direct to customer.
Outside the UK, we maintain standards by recruiting experienced local managers, committed to driving the business. It's not our style to micro-manage. But we're in close communication and conduct regular performance reviews.
Looking ahead, our acquisition strategy is to identify existing businesses with strong local management and good growth prospects. We've opened over 200 new stores, primarily in France, Spain and Australia, since 2007.
The expansion of our multi-channel offer is crucial to our success. GAME's online retail sales grew from £4 million in 2003/4 to over £106 million in 2008/9. And our digital distribution services are giving us valuable insight into customer demands in this evolving marketplace. We plan to invest further in multi-channel services in the current year.
