Sep
GAME To Close 85 UK Stores
Written by Scrooby on 29th September, 2010 with 1 Comment
Tags: Game, GAME Group
After yet another year on year drop in sales for the biggest game retailer in the UK, GAME Group have announced for the second time this year that they will be closing down some of their stores over the next 3 years.
GAME Group, which owns both GAME and GameStation stores, currently own 635 stores across the UK, even after closing 15 stores earlier this year.
Over the next 3 years, the gaming retailer plans to shut down another 85 of their stores across the UK. A lot of gamers won’t be effected by this change massively as GAME Group are trying to cut down on their overlapping stores, for example, where there is a GameStation and a GAME store both in the same area. I can understand that really, the town where I live, there is a GameStation about 200 meters away from a GAME store.
Chairman of the GAME Group, Peter Lewis, said the following:
By Christmas 2013 we expect the UK store portfolio to have been reduced to about 550 stores as we reduce store over-lap and drive for greater cost efficiency
He also justified the cut in stores by saying that during the cut in stores earlier this year, 70% of the customers moved to another GAME Group store in their local area. He put this down to successful marketing campaigns.
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The main problem, as they have said, is the overlap. Some cities have 2 or three within walking distance of each other. I know of others that are in the worst place possible that they cant be making enough money. All that combined with online prices and supermarkets and argos now selling/buying pre owned games, its just not worth keeping them all open.