We’re used to retailers giving away free store credit, but virtual shares? That’s a new one.
GAME yesterday announced that as part of its proposed flotation it would be offering 20,000 Reward Card customers some “virtual loyalty shares” worth around £1.8m.
As part of this, 2,000 customers who are not being pre-selected will also be offered the chance to get involved.
“If our floatation is successful, we intend to reward 20,000 of our loyal customers with virtual loyalty shares to the value of £100,” the chain said in an email to customers.
“18,000 of those lucky customers have already been selected from our most loyal Reward customers. That means there are still 2,000 lucky customers out there who may be chosen to receive virtual loyalty shares.
“We’re giving every customer who purchases any product in any of our stores or through our website between May 19th 2014 and June 5th 2014 the chance to be chosen as one of the lucky 2,000. If our floatation is successful, we will hold a prize draw and the 2,000 winners from this draw will be offered a number of free virtual loyalty shares in GAME.”
MCV understands that the value of these virtual shares can be converted into in-store credit.
“Participating Customers will be able to redeem their Loyalty Shares for GAME Reward points on fixed dates in October 2014, March 2015, October 2015, March 2016 and October 2016,” GAME adds, with customers able to redeem either half or all of their outstanding shares each time.
The value of these shares “will fluctuate broadly in line with the value of the Ordinary Shares” and “all outstanding Loyalty Shares will be automatically redeemed for GAME Reward points if the price of the Ordinary Shares reaches a value that is equal to or greater than twice the value of the Ordinary Shares at the time of the IPO”.
All shares will be automatically redeemed three years after the IPO if a customer has not chosen to do so before this point.