GAME to close 43 stores, axe 247 jobs
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."
Good luck to all of those losing their jobs.
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 aren’t 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.
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
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.
Hopefully one will go here.
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...