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Retail

GAME to close 43 stores, axe 247 jobs

Fri 26 Feb 2010 8:11am GMT / 3:11am EST / 12:11am PST
Retail

GAME, Gamestation and Debenhams concessions to close, as retailer prepares for tough 2010

High Street retailer GAME has confirmed that it is to close 43 stores at the cost of 247 jobs in the UK.

The company will shut 12 GAME stores, six Gamestation businesses and all 25 concessions in Debenhams stores. Sales over the Christmas period were down 18 per cent, and the firm announced last month that further consolidation would but 80 jobs in the Gamestation business at risk.

"The majority of the identified sites are located close to another one of our stores, and we will help each customer affected by a closure to transfer to their nearest store as well as our online offerings," said GAME in a statement to GamesIndustry.biz.

"We will provide extensive support to the teams in each store. However, with deep regret, we have had to offer redundancy to 247 employees. We will do our utmost to redeploy roles if possible, and have started consulting with all affected employees in the 43 sites."

The company blamed tough market conditions expected in 2010 for the move, and said the decision had come after a period of review to ensure the business "operates as efficiently as possible while consistently delivering the high standards of service our customers demand."

12 Comments

Terence Gage Freelance writer

1,288 120 0.1
Well, that's a shame, although having Game and Gamestation stores still open in the same towns hasn't always seemed like a particularly efficient business practice.

Good luck to all of those losing their jobs.

Posted:4 years ago

#1

Ignatius Fernandes Studying Computer Science, Kingston University

26 0 0.0
Sad Sad story

Posted:4 years ago

#2

Kevin Clark-Patterson Lecturer in Games Development, Lancaster and Morecambe College

294 27 0.1
Sad to hear but as mentioned above, there is a Game and Gamestation store less than 100 yards from each other where I live - surely that doesnít make sound business sense - unless it is to deter rival businesses from moving in. Which at present there is already a HMV but there are little other worry as Woolworths had gone amongst others

HOWEVER

Why is it that I can order via the internet the same game online from Game and it be upto £10 cheaper than in store. (operating costs I know but surely supplied form the same warehouse)

OR MAYBE

Game and Gamestation are pre empting the pinch on boxed products (long way away yet but the timing is right before operating profits are released & on the back of the recession)

LASTLY

The mark-up on pre-owned games is ridiculous, and those extra 20% trade incentives arenít worth sh*t! No wonder Tesco and Asda are jumping on the bandwagon as the profit margin far outweighs the sale new stock.

Rant over.

Posted:4 years ago

#3

Matthew Humphies Freelance Game Designer

3 0 0.0
I suspect a few may disappear in Birmingham. There's 2 GAME stores in the Pallasades, a GameStation on New Street, and a GAME in the BullRing. If I had to gues I'd say they will shut the small Pallasades store and leave the rest.

If they are being more drastic then both Pallasades stores will disappear.

Edited 1 times. Last edit by Matthew Humphies on 26th February 2010 1:06pm

Posted:4 years ago

#4

Hummy Rashid Studying Orthoptics, University of Sheffield

5 0 0.0
I've always preferred GameStation to Game, it's a shame that it's the former that will be more severely affected.

Posted:4 years ago

#5

Jeff Wilson

46 0 0.0
Let's consider the future in Game purchases. The UK Government has announced it will be upgrading the broadband network to rival that of other countries (at last). Thereby, allowing downloading LEGAL purchased games to become much faster. The consoles are already upgrading their storage capacity to allow for games played off the HD or expanded with DLC. Companies such as Apple will profit from this as they already have shown a well designed service model with the iTunes Store. And, most games, new or second hand, can be purchased cheaper off the Net than in the High St.

Games sold on DVD or BluRay in the High St stores will have to compete with that in the future. That, plus the high running costs needed to maintain a store in a prime location will make it very hard for the likes of GAME and GameStation to make a profit. The only option I can see for such stores is to reduce the markup of 2nd hand games to match the Net and maybe have an in house MultiPlayer section as an incentive to attract customers.

Sadly, it won't be easy for such stores to stay in business when they only sell games and nothing else. I hope those made redundant will find work quickly.

Posted:4 years ago

#6

Barla Von Designer

31 0 0.0
Doesn't affect the PC gamer!

Posted:4 years ago

#7

Otakar Schon Technology editor, Economia

40 9 0.2
there is rumor about a game selling chain being closed here in czech republic... GAME is active here so we will see in just few days if this move is international.

Posted:4 years ago

#8

Elikem Jubey

30 2 0.1
I see Enfield Town being affected - there's a Game and Gamestation shop not far from each other.

Posted:4 years ago

#9

Ricky Hodgson Studying BA (Hons) Computer Games and Visual Effects, Anglia Ruskin University

27 0 0.0
In Basildon town, Essex there are TWO GAME stores and a Gametsation in the same town square! ridiculous!

Hopefully one will go here.

Posted:4 years ago

#10

Jon Irenicus OCAS

10 0 0.0
Otakar Schon. You have extremely bad information. Its another store chain which is closing operations. GAME is profiting in CZ. On the opposite, they are opening new stores. Please keep yourself better informed.

Posted:4 years ago

#11

Jon Irenicus OCAS

10 0 0.0
You know, GAME is actually something like Macdonald of game retails business. They are trying to be everywhere, they are completly uniform, they like to employ cheapest work force, which is being treated like brainwashed monkey. From what i have heard, they even dislike to employ gamers.
GAME is being managed by incompetent people who were riding on gigantic wave of relatively new gaming industry grow. They copied GAMESTOP with preowned and they are excited how you can actually earn gigantic profit from something where you didnt add practically any value, except monkey trained stuff and ugly purple pink stores. But they dont mind. They ve earned couple of billions, and when time of digital distribution will come /i expect in around 10-15 years it will completly overtake physical media/, they will just change logo and start to sell for example... fill anything. Some managing directors even will not notice that they are not selling games anymore, i presume. They will come with ideas of preowned clothes, preowned already chewed food...

Posted:4 years ago

#12

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