Game warns on profit as sales fall 10.6%
Total sales at video games retailer Game Group fell by 10.6% in the 41 weeks to 12 November as revenues decreased across all categories. Like-for-like sales declined by 8.6%.
Game said its performance was ahead of that of the overall video games market which fell 12.3 % in the period.
The group warned that it now expects full year like-for-like revenues to be no better than 7%.
Despite the difficult trading Game said its medium term strategy was “on track”. Its store closure programme was on target, with a net 37 closures this year and footfall conversion set to grow by 1%.
Game said its group digital sales had grown over 40% in the year to date, following the launch of new initiatives. In addition, 15 exclusive editions of AAA software titles had been released in the last 10 weeks, which had increased the group’s market share. Further exclusive editions will launch before Christmas.
The group said 2.3 million new customers had joined its loyalty schemes this year, taking the total to 19.3 million.
Ian Shepherd, GAME CEO, said: “The overall video games market remains very challenging, despite strong title launches, and our guidance today reflects the extraordinary economic times in which we are operating. GAME has outperformed the market, reinforcing our position as market leader, and I am hugely proud of our teams.
“They remain focused on delivering our strategy, controlling costs and driving operational cashflow, and we remain well placed to benefit in the medium term both from the next console cycle and the growth in digital and social gaming.”
