LONDON (Reuters) - British PC and video games retailer Game <GMG.L> said it is aiming to revive its fortunes by increasing sales over the Internet and converting more visitors to its stores into paying customers.
Updating on strategy on Wednesday the firm, which trades from over 1,300 stores in nine European countries and Australia, detailed a multichannel retail plan that aims to maximize new revenue streams and provide new payment options.
Game needs to evolve because the $40 billion global video games market is changing quickly, with innovation in existing formats as well as social and mobile gaming, and growth in digital and online distribution.
The firm said it was confident its three-year plan would be profit enhancing, although it cautioned that its gross margin would decrease as online and digital revenues become a larger part of the sales mix.
It forecast a margin impact of around 100 basis points in 2011/12 as the business is repositioned.
Game said it would invest all of the 15 million pounds cost savings it expected to achieve in 2011/12 on its plans.
Shares in the firm closed at 72 pence on Tuesday, valuing the business at 248 million pounds ($400.2 million).
(Reporting by James Davey, editing by Paul Sandle)