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Toy R US, Argos hit by poor game sales

By Matt Martin

Mon 13 Sep 2010 7:37am GMT / 3:37am EDT / 12:37am PDT

Retailers blame slow demand for systems and software in Q2


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.

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Chris Fox Studying BSc Gameplay Design and Production, Staffordshire University

7 0 0.0
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:6 years ago


Barrie Tingle Live Producer, Maxis

472 348 0.7
Agreed with Chris on this one. Argos, Toys R Us and HMV aren't known for competitive pricing against the likes of Amazon, Play and ShopTo. Even with the supermarkets jumping in on the budget pricing of games like FIFA at launch to bring in the shoppers these stores need to find new ways to be competitive in a time where saving money is on people’s minds.

GAME also gets by as it is the main place for trade in games so they can save money by taking in games they don't play anymore.

Posted:6 years ago


Private Industry

1,176 183 0.2
Hmmm never considered going to Argos to buy any games. As for HMV, it`s often a good choice here in Ireland as they have new releases sometimes 5 bucks cheaper compared to Game or Gamestop. The only thing is that HMV usually doesn`t have pre-order bonuses or limited editions as they are most of the time either Game or Gamestop.

Posted:6 years ago


Kingman Cheng Illustrator and Animator

962 187 0.2
I swear I've never bought a game from Argos ever or even Toys R Us. I used to go to specialist game stores (until places like Amazon and others popped up).

Posted:6 years ago


Sam Maxted Journalist / Community / Support

155 65 0.4
To be fair to HMV, I've found that at times, they offer significantly more for 2nd-hand games than some of their competitors. On one occasion a few months ago, I was able to trade in something there for double what the other stores were willing to pay for it.

The only trouble is finding something with a low enough price to buy once games are traded in there - something generally needs to be on sale to make it worthwhile.

And Argos? I'm not sure they've ever been competitively priced as far as games are concerned. I can't think of any reason for someone to shop for games there, other than them not knowing any better.

Posted:6 years ago


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