GAME to unveil new £15m strategy today

Video games retailer GAME will today lift the lid on a significant change to business strategy that will position the Group for life in an increasingly digital world.

Later this morning group chief executive Ian Shepherd will reveal the company’s 15m secret.

"Today is an important day for GAME as we set out our strategic direction for the business," Shepherd said.

"Importantly we will set out how we will invest behind our strategy and give clarity about how we will track delivery of our plans.

"Over the next three years we are confident that the delivery of our strategic goals will be profit enhancing. The activities announced today will increase our revenues from new and existing channels, which will improve overall profitability.

"The gross margin percentage will decrease as online and digital revenues become a larger part of our sales mix. In 2011/12 we anticipate there will be a margin impact of around 100 bps as we reposition our business to be truly multichannel.

"Across the three year period we expect our operating cost base and capital expenditure to be broadly in line with 2010/11. In the short term, we have chosen to invest nearly all of the 15m of cost savings we expected to achieve in 2011/12 to deliver on our strategic goals."

MCV will have all the news as it happens.

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