Strong performance from Game
Success in securing an improved supply of Sony PSP consoles, together with a creative promotion of established formats and the launch of Xbox 360, led to significantly improved trading over the Christmas period.
For the 49 week period ended on 7 January 2006 total Group sales were up by 11.5 per cent Group LFL sales were up by 2.7 per cent. Total sales for the UK and Ireland were up by 4.9 per cent with LFL sales up by 1.6 per cent.
Total sales for Continental Europe were up by 43.0% with LFL sales up by 7.8%. The company said that, looking ahead to 2006 it expected a rapid growth in ownership of both Sony PSP and Microsoft Xbox 360 together with the expected launch in the second half of Sony Playstation 3 and Nintendo Revolution.
Commenting on the Christmas trading period Peter Lewis, Chairman said “This outstanding Christmas sales performance has helped an otherwise difficult year as the industry transitions to the next technology cycle. The UK market continues to be very competitive, particularly on second generation formats, which has in part contributed to our reduced gross margins. However, the resilience of our business model has been amply demonstrated. Our industry leadership was reaffirmed with an increase in market share throughout the Christmas period compared with October and November.
The new technology cycle has now begun. With 700 stores our business is well positioned to enjoy the benefits. The Board remains confident of a successful outcome for the financial year 2006/07”.
