GameStop Fights Amazon With Beacon

GameStop Corp. will soon test beacons that will allow it to introduce more digital marketing into its physical stores, according to the Wall Street Journal. The move is part of the company’s effort to fight Amazon.com and other retailers.

The beacon sensors will allow the company to send real-time promos, ratings and reviews to customers’ smartphones when they shop in-store, and will help the retailer to better engage with customers and boost sales.

“We call it the digitization of the physical space,” Jeff Donaldson, senior vice president of GameStop’s Technology Institute, said in the article. This GameStop business unit was launched in March, aiming to build apps to help retailers adapt to increased online and mobile shopping trends.

Starting in September, Texas store customers who use GameStop’s mobile app will start to see signs that direct them to 6-10 beacons on the shelves. Phones that are within 6-8 inches of a beacon will trigger the transmission of brand promos, product reviews and ratings from Xbox, PlayStation, Nintendo, and more, according to the article.

In addition, based on their purchase history, wish lists, and game libraries, consumers may also receive targeted offers.

“You’ll be able to make a purchasing decision based on that rich content about the product, as well as the promotional offers that we’re willing to extend to you while you’re at the store that day,” said Charlie Larkin, senior director of GameStop’s technology institute, in the article.

However, the WSJ reiterates that it is still unclear how consumers will respond to the beacons, especially now that many shoppers are “concerned about the surveillance associated with tracking technology.”