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GAME to close over 100 stores in UK

Retailer to reduce store base from 677 to 550 by end of 2013

GAME has confirmed it is to close over 100 of its UK stores by the end of 2013.

The news follows the release of the company's year-end financials earlier today, which showed profits had fallen by 28 per cent.

According to the retailer, it will now reduce its 677 stores in the UK to 550 - a move that it says has resulted in part from increased competition from supermarkets and online retailers.

The closures will take place in addition to ones announced earlier in the year, which affected 12 GAME stores, six Gamestation businesses and 25 concessions in Debenhams stores.

"In December 2009 we closed 19 GAME concessions in Borders stores, and since the year end we have also taken the decision to terminate our concession partnership with Debenhams and announced plans to close 18 other stores," said GAME chairman Peter Lewis.

"Our strong customer base of Reward Card holders enables us to contact customers and transfer the majority of the revenues from these stores to the next nearest GAME or Gamestation. There will be no material costs from these closures.

"We continue actively to review our UK store base, with a view to minimising store overlap and maximising opportunities from lease expiries, breaks and rent reviews.

"Our average lease length of six years for our UK stores is an advantage. By Christmas 2013, we expect the UK store portfolio to have been reduced to about 550 stores. In addition, we are investing to create the leading PC and video games website and download service in the UK.

"Operationally we have continued to derive benefits from the integration of GAME and Gamestation. We have also rationalised our store and head office cost base which, in conjunction with the store closures, will result in savings of a further £5m in each of the next two years."

Internationally, GAME said it had opened 64 stores throughout the year and closed seven, taking the total to 73. Market share had grown in every international location, said Lewis.

Following the release of the company's financials today, CEO Lisa Morgan resigned from her role with the retailer, as did COO Terry Scicluna.

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Kath Brice