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Retail

GAME: IPO will "normalise some things"

GAME: IPO will "normalise some things"

Fri 23 May 2014 9:44am GMT / 5:44am EDT / 2:44am PDT
Retail

Martyn Gibbs says move will be positive for suppliers and consumers

Martyn Gibbs, CEO of retailer GAME, has given some insight into the benefits the company hopes to see from its upcoming IPO.

"What we are hoping to do by coming to market is to normalise some things," he told MCV.

"We are going to come to market with no debt, which will allow our supplier partners to hopefully go out and gain normal credit insurance and things like that. That means we will be able to focus on all the growth opportunities that we have got with our partners and really spend all of our time on that."

Reports that GAME was planning a 300m IPO began circulating in January.

Gibbs also addressed concerns that the shift to digital would leave retailers at a disadvantage and pointed out that many customers bought digital content from GAME, and 75 per cent of those purchases were not with a debit or credit card.

"People get a bit wound up at times with the physical versus digital piece. We are just selling content in a way that customers want to access it, such as how they pay for it. The vast majority of our customers are not buying digital content with credit cards. Will those people be buying content with credit cards in five years time? Probably not," he explained.

"There's a big piece for me in terms of people confusing the word digital with disintermediation, and actually the vast majority of our digital purchases are made within a shop. And I do think that will carry on."

GAME also recently announced it was offering its customers a chance to share in the benefits of the IPO, 20,000 will receive 100 of virtual shares.

The company currently has 560 stores across Europe.

2 Comments

As a consumer, I have just TWO requests.

1/Trackable consistent reliable delivery of product!
2/No future 11th hour cancellations of pre orders. At least give people 1-2 weeks to obtain a physical copy of the games. This is especially irksome, when it comes to the cartel on exclusives.

Happy IPO!

Posted:5 months ago

#1

Shane Sweeney Academic

396 407 1.0
Mark me as cynical but Isn't the "brick and mortar" video game store only a handful of years away from collapsing in upon itself.
If I privately owned GAME I would want an IPO so I could sell my stock as soon as I could.

Every book store in Australia has effectively closed besides a handful of small hipster bookstores that specialize in certain niches. I always assumed the future of video game stores would also just be like Comic Book stores. Small, niche and personal.

Can anyone really see GAME having a life span in say 10 years? If anything I would be thinking of winding down the business or diversifying out into a chain of video game bars or something.

GAME decades ago really should of been working on distribution systems. The owners of EB Games and GAME really need to ask their management why everyone buys games through Valve or even Origin when they should of been the king of game distribution. Cash flow certainly wasn't a problem, especially during the most profitable periods of video game retail.

Edited 2 times. Last edit by Shane Sweeney on 27th May 2014 8:18am

Posted:4 months ago

#2

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