Video gaming retailer GameStop (NYSE:GME) is running deep promotions linked with its PowerUp Rewards program to boost holiday sales. Its latest offering allows PowerUp members to pay an extra $50 for the purchase of a new Xbox 360 with Kinect by trading in any iPod Touch, iPhone, or iPad device at its U.S. locations. [1] We believe the promotions will help the company not just improve its holiday sales but also boost the popularity of its PowerUp Rewards program among gamers. GameStop is a leading retailer of new and used video-gaming products competing with the likes of Wal-Mart (NYSE:WMT), Best Buy (NYSE:BBY) and Amazon (NASDAQ:AMZN).
The Trefis price estimate for GameStop stands at $32.51, which is roughly a 35% upside to the current market price.
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GameStop is looking to increase its holiday sales with promotions
After a disappointing Q3, GameStop is looking good with its performance so far. It has kicked in holiday special campaigns offering deep promotions to woo shoppers. Additionally, it’s linking exciting promotions with its PowerUp Rewards to enhance the popularity of the rewards programs among video gamers. Since its launch, PowerUp Rewards has been a major growth driver for the company, with the total number of PowerUp members standing in excess of 14 million by the end of Q3. [2]
We expect GameStop to make good sales for the rest of the holidays season, with both digital subscriptions and video games emerging among the highest growing categories during the holidays in 2011. [3]
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Notes:- GameStop’s latest offering, Source: exophase [↩]
- GameStop PowerUp Rewards membership reaches 14.5 million, Source: Seeking Alpha [↩]
- comScore analysis of highest growing categories in 2011 holidays, Source: comScore [↩]
