ISME 09: Upstart Play N Trade redesigns its experience, takes aim at GameStop

CHICAGO — Two executives from the video game retail franchise Play N Trade shared insights from their recent consumer research and store experience redesign, during a Wednesday afternoon session at the In-Store Marketing Expo.

"Buying a game is the beginning of an experience, but it's funny, because the places where you buy games tend not to be an experience," said Ric Sorgel, vice president of retail strategy for EWI Worldwide, the marketing company which worked with Play N Trade on its redesign.

That was a pretty clear swipe at GameStop, the nation's leading video game retailer, which has a reputation among gamers for cluttered stores and lukewarm customer service.

Play N Trade operates 240 stores, all franchises, with plans to open 150 more in the next 12-18 months. It is the fastest-growing video game retail franchise in the U.S., with expected 2009 sales of $101 million.

Sorgel explained how his company conducted in-depth research into what gamers want by isolating four demographics — males 17-25, females 17-25, males 25-40, and parents of kid gamers 8-15 — then paying eight people in each of them to shop for games and keep a diary of their experiences.

The result was a store redesign strategy that emphasized live events at a "Players Club" located at the rear of the store, where six high-end gaming stations allow networked tournaments; a brighter color palette; redesigned gondolas that make better use of end cap space; and a more spacious and open store flow.

Play N Trade's CEO is Larry Plotnick, who was formerly COO of the Game Crazy brand, the second largest video game retailer. He spoke to the importance of using events to reach the two fastest growing segments of the video game buying public: adults 50 years and older, and female gamers. The latter, he said, are becoming the "barometer of family gaming," monitoring the games that both dads and kids are purchasing and playing.

As for older adults, he shared the story of a Play N Trade franchise that hosts Tuesday night bowling leagues, offering Wii Sports bowling tournaments for seniors.

"Instead of a bunch of 60-year-old men going to a bowling alley and paying for games and shoes, they come into our store and play there," he said.

When asked why people would want to come and play games in a store that they could play at home, both men noted the much wider variety of games available — Play N Trade lets visitors test out any game in the store, an inventory that usually tops 2,000 unique titles.

Plotnick also noted the competitive nature of the games themselves, and the thrill that comes from winning a game in a public place where other shoppers can see the gamer's skills.

Pre-owned games are a big component of video game retail, and Play N Trade's pure-franchise structure makes inventory management a challenge. He said his company is working on what he called an "internal eBay" that lets franchisees negotiate and trade inventory as needed.