GAME Groups interim results reflect tough market conditions
The company increased market share in the period but like-for-likes were down 9.9% for the 26 weeks ended 31 July 2011.
Group revenue for the 26 weeks ended 31 July 2011 decreased by 10.5% to £558.8m with lfl sales down by 9.9%. In the UK and Ireland, total sales decreased by 12.0% and lfl sales were down by 10.0%. In International operations, total sales decreased by 10.2% and lfl sales fell by 11.4%.
GAME Group says that customer relationships are still strong with their loyalty schemes already attracting 18 million members and continues to grow, with 1 million customers joining this year.
The number of transactions using a loyalty card increased from 42% to 53% and CRM activities have been overhauled.
Commenting on the results, CEO Ian Shepherd said, “2011 has been a very tough year for the video games industry. A combination of a cyclical low point in the industry itself and unprecedented macro-economic conditions have led to significant market revenue declines.
GAME Group has increased market share in this difficult climate as we have focused on delivering our strategy. Nonetheless, the impact of the wider market can be seen on our first half results.Like many other retailers, we believe that trading conditions will remain tough for the remainder of the year, and have set our plans accordingly. We are determined to again outperform a difficult market this Christmas, by using our unique specialist position to give customers the very best choice and value.
For the future, we are investing for a different video games market, with new games consoles coming to market and customers exploring new ways of playing games, including digital; online; and cloud-based gaming. The Group, through its Dedicated to Gaming strategy initiatives, is taking a leading role in these developments in order to benefit from market recovery in the coming years."
Email this article to a friend
You need to be logged in to use this feature.
Please log in here