Toy R US, Argos hit by poor game sales
Retailers blame slow demand for systems and software in Q2
Argos
We are a unique multi-channel retailer recognised for choice, value and convenience. We sell general...
Retailers on both sides of the Atlantic have blamed poor sales of videogames for weak financial results in the second quarter.
In the US, Toys R Us singled out a slowdown in the sale of videogame systems in the entertainment sector, alongside fewer new releases. Sales in its Entertainment category were down 9.4 per cent to $248.8 million. (£160.9m)
In the UK, Home Retail Group reported total sales down 2.8 per cent at catalogue store Argos, to £924 million ($1.4bn), with like-for-like sales down 5 per cent. The drop was blamed on videogames and large ticket home items, although computers and toy sales were up.
Last week entertainment retailer HMV cited "weak" sales of videogames for a 15 per cent decline in like-for-like sales.

I wonder if these falling sales are fuelled by the casual buyer and those who buy games only as gifts for friends/children being educated by those in the know that Toys R Us, Argos and HMV are consistently significantly more expensive than websites like Play and Amazon. Especially in the 'current economic climate', people will seek out the most competitive prices and these stores are simply pricing themselves out of the market.
While GAME and the remnants of Gamestation often price their goods similarly to the aforementioned stores, they get by thanks to specialising. The general populace will gravitate to GAME knowing they will be sure to find whatever it is the TV or their children says they need to buy.
Posted:2 years ago