Company Profile - Game

A major player

Game, owned by Frasers Group, has been a mainstay of the British retail scene for more than three decades. Known for its specialism in consoles, computer games, gaming accessories and licensed merchandise, the retailer is now laser focused on increasing its toy business. Rachel Town, senior trading manager – Toys, and Philip Parker, head of Buying, spoke to Toy World about Game’s approach to the category and why it believes it can become a major player in the marketplace.

hristmas 2022 saw Game tangibly put its stamp on the toy category for the first time in its history. The retailer has been undergoing something of an overhaul for the past couple of years, according to Phil, moving away from a predominantly games business to one that is far more focused on the Toy & Game industry. This has led to big changes in terms of the space the category is afforded, both in-store and in its 140+ House of Fraser and Sports Direct concessions. The latter have taken off in earnest ever since Game agreed to a £52m takeover by Mike Ashley’s Frasers Group in June 2019, and to date the strategy has been a success: there are more now Game concessions across the UK than there are stand alone stores.

Game is currently working with a raft of big-name toy suppliers including Lego, Hasbro, Mattel, Jazwares, Character Options, Asmodee and The Pokémon Company – and Rachel says the list is growing all the time. At the London and Nuremberg toy fairs, she and her team were actively seeking out new ranges and suppliers. While some of the retailer’s desired partners aren’t yet fully on board, most are at least engaged in what Rachel describes as “positive discussions”.

During a strong Christmas period, Pokémon toys and trading cards stood out. Plush is a major growth category for Game, driven largely by Squishmallows and Ty, as well as licensed plush based on top gaming franchises such as Pokémon, Super Mario and Animal Crossing. It’s unsurprising that these lines would resonate with Game consumers, which traditionally have been slightly older console and computer gaming fans. But as Phil explains, the retailer is now skewing its toy offering towards a younger audience.

“Game has always been a go-to destination for video game consumers who would also love to buy Star Wars and Transformers merchandise, for example - the more expensive collectibles,” he notes. “We’re now working our way down the age groups and improving the diversity of our product offering, testing what customers are after. We’ve been pleasantly surprised by how widespread our customers’ tastes are, as well as the age ranges and play patterns they shop for. We’ve also noticed differences between our standalone store shoppers and concession shoppers, meaning we can now enjoy great success with lines such as Care Bears and Barbie, that you wouldn’t ordinarily see in a dedicated Game store.”

Frasers Group is itself a diverse entity, spanning multiple brands and retail outlets. In addition to Game, Sports Direct and House of Fraser, the group owns Flannels, Jack Wills, Sofa.com, Evans Cycles, USC and Everlast, and its customer demographic encompasses everything from value-seekers to high-end luxury lovers. Frasers Group is also driven by its physical presence. Although online is an important part of the business, and one that benefits from plenty of investment, the focus is very much on its bricks & mortar shops and concessions. Phil notes that the department store model is a tough one in the current climate. House of Fraser’s efforts to mitigate this include bringing all the top brands together under one roof – and toys have been a key part of the picture. This emphasis on toys has trickled through to other areas of the group where toys are perfectly placed to excel, such as Game. This is why the retailer, and Phil and Rachel, are so confident that the time is right to push forward into the category and increase its standing as a toy destination among shoppers.

“We have a reward database which tells us what consumers are buying,” adds Phil. “For example, we can see that shoppers buying Marvel video games are also wanting to buy Marvel toys, which gives us some really easy crossover to pick up on.”

Licensed toys may be where Phil and Rachel set their sights early on, and certainly it’s a core element of Game’s approach to toys, but generic brands have also been performing very well. The pair are testing new ranges all the time as they continue to sound out what works. They’re also creeping ever lower along the age scale, with offerings for previously untapped categories including Pre-School and even Infant toys. Picking up on the importance of crossover once again, Phil highlights the huge potential within House of Fraser stores to site toy concessions near kids’ clothing departments, regardless of whether you’re working with licensed or generic goods. Innovation within stores is playing a big part in drawing shoppers in and showcasing the greatly expanded toy range Game now offers. Phil and Rachel are keen for investment in the store estate, one of the many things Frasers Group is good at, to elevate locations with better displays, fixtures and lighting that, combined, provide an immersive and memorable shopping experience. Game wants to give shoppers a reason to come into town – and remind them how convenient it is to pick up lots of different products under one roof, as they can in House of Fraser or Sports Direct. Phil shares an anecdote regarding one of his recent trips to a Sports Direct store, in which he saw multiple customers clutching football boots or tennis rackets in one hand, and Play-Doh or a Lego set in the other.

He adds: “Customers don’t shop the way we in the trade might see concessions: they just look around them and see the things they or their kids need, as well as the things they or their kids want, all within easy grabbing distance and ranged in an attention-grabbing fashion.”

Frasers Group is leaning heavily into strong branding within its Game stores and concessions, designed to draw shoppers in and hold them there while the toy range tells a story. Recognising that the potential for branding is slim on a contracting high-street with limited square footage, suppliers including Hasbro, Lego and The Pokémon Company have been working closely with Game to build store-in-store experiences that shout about their brands from the rooftops. Theatrical installations, bespoke fitouts and dedicated brand zones, including some that highlight cross-category opportunities such as bedroom mock-ups, have been a hit at Manchester’s House of Fraser department store. The store’s Slush bar, formerly a champagne bar, has been completely transformed with a fun new Monopoly livery: even the doors of the lifts have been wrapped, turning them into squares from the classic Monopoly board. (Mr Monopoly also made an appearance at Christmas for a meet & greet with shoppers.) Frasers Group has also worked with Hasbro on a Game installation at its Bluewater House of Fraser, which has been similarly well-received.

“Having so many stores which Game could go into might be a challenge in terms of planning, but it’s also a huge opportunity for our suppliers to really make a space their own,” enthuses Rachel.

Phil adds: “Manchester is where we’re focusing our efforts at the moment. It’s very much a best-in-class demonstration of what we’re capable of doing for our partners, but from there we can put these installations into other stores across the UK as and where an opportunity – or need – is identified. Brand owners therefore get the chance to really make an impact at the point of sale, and shoppers get the chance to enjoy inperson shopping the way it should be.”

Phil tells Toy World that the reality of what Frasers Group is achieving with Game in Sports Direct and House of Fraser stores is often very different to the expectation suppliers have, which is often based on visits to Game stores from six or seven years ago. As readers will be able to see for themselves from the pictures accompanying this piece, Game’s concessions are genuinely very impressive, both from a trade insider point of view and that of a consumer. It’s obvious that there are some very strong opportunities out there for suppliers wanting to work with the retailer.

Game’s heritage also translates into toy launch knowhow. The busy video game launch calendar means Game stores and concessions are used to adapting layouts and branding quickly and efficiently. This experience also means that film and TV launches and other major brand moments (The Mandalorian, Barbie, D100) can be used as springboards for boosting awareness of licensed toy lines. The buying team has its finger on the pulse of what is coming through, and has built a hugely successful pre-order model that really drives sales, as it saw with Hasbro’s Heroquest board game. This sets it apart from many other toy retailers and is yet another reason why big toy suppliers are lining up to on-board.

Game’s store teams are also vitally important to the overall retail experience. The company has a special e-learning platform where staff members can find out everything they need to know about new products, meaning a better service for shoppers who might appreciate some input on what toy or video game to go for. There’s also an annual conference where employees can get hands on with product. Ordinarily this would be video games, but in keeping with Game’s current strategy, the past couple of years has seen attendees bombarded with the newest toys and boardgames. Hasbro has once again been leading from the front: last year’s conference had a dedicated Nerf room in which store managers took turns blasting each other with darts during the ‘testing’ process. It’s a tough job, but someone has to do it.

“This emphasis on learning makes such a big difference to our customers,” Phil explains. “If you’ve actually played 5 Alive or Uno then you’re able to talk about what they’re similar to, whether they’re more or less complex than other games you stock, whether a child of a certain age could understand and play it and so on. It all elevates the experience and the opinion of Game (and its brands) that shoppers go home with.”

Frasers Group has some very ambitious growth targets for Game - 40% YoY in 2023 - and an eye on increasing its square footage within the Frasers Group store estate. To date, concession installations have been centred upon consolidation in certain areas, but the group is now looking at expanding Game into new areas where it doesn’t currently have a presence. This could mean as many as 15 or 20 new concessions this year alone.

As concession models are generally much easier than dedicated store models, which go hand in hand with negotiating rent and rates and often outfitting an entire store from scratch, Game can afford to be quite aggressive. It will also continue pursuing suppliers and categories it thinks will be able to plug a gap within its offering – and benefit from its specialist approach to business.

If you’re interested in becoming one of those suppliers, contact Rachel on Rachel.town@frasers.group.