GameStop struggles to stay in business as the gaming industry embraces streaming, but the retailer is still adapting its model to keep its doors open. The company announced a redesign of its PowerUp Rewards Loyalty program, which changes the system’s perks to emphasize collectibles rather than pre-owned games.
The upgraded plan gives Pro-level subscribers a $5 coupon every month, which can be used to purchase anything in the store. The deal will expire at the end of each month. As an added welcome gift, Pro members will receive a $5 coupon instantly.
The perk departs from the Loyalty program’s current iteration, which gives subscribers a 10% discount on pre-owned games and accessories. The new version will allow shoppers to put $5 toward all purchases, including physical products. GameStop says that the change is meant to give customers more flexibility.
“As part of an extensive test on identifying how we could enhance our PowerUp Rewards loyalty program, we recognized there are customers of all types that want to be rewarded in a variety of ways across a mix of gaming and collectible products that we offer. Based on customer feedback, our PowerUp Rewards Pro-level membership has evolved to provide our most loyal customers the opportunity to choose how they want to be rewarded,” GameStop Chief Customer Officer Frank Hamlin said in a statement.
Pro members receive more perks under the revised plan, such as additional offers and savings during Pro Days sales.
The loyalty program now features two subscription levels: A $20 a month tier that includes a physical subscription to Game Informer and a $15 version that includes digital copies of the magazine.
The overhaul comes at a critical time for GameStop, which recently shuttered hundreds of locations. Increased interest in streaming, thanks to services like Google Stadia and Xbox Game Pass, cuts into physical game purchases more and more each year. That poses a problem to GameStop’s old business model, which relied on selling new and pre-owned physical games.
The upgraded plan refocuses subscribers’ attention to the game chain’s assortment of collectibles, including toys and apparel. Those physical products present a more time-proof strategy for GameStop, which could help sustain the business if games transition to a full-fledged digital medium.
In the meantime, both the Xbox Series X and PlayStation 5 will launch later this year, which could help bolster GameStop’s hardware and accessory sales during the 2020 holiday season.
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