UK retailer GAME profits down 10m pounds

Company ‘doesn’t foresee’ store closures

Despite a drop in profits, UK retailer GAME will not be looking to close stores.

In the first half of the financial year (up until January 23, 2016), the games retailer adjusted earnings to £33.1m – a £10m drop on profits in the same period last year.

Talking to MCV, CEO Martyn Gibbs insists every store is turning a profit, and while 57 store leases will be expiring this year, there are no plans for ‘material’ store closures – but locations may vary.  

While the company continues to invest in its Multiplay and GAMEtronics ventures, it will be looking to make “operational efficiencies,” which includes the closure of the internal customer services. It blames spiraling Xbox 360 and PlayStation 3 sales for the fall in profits. 

“We are reviewing every part of the business based on the market, but also based on the organisation design we need both for now and in the future,” Gibbs said.

“In terms of answering the store question, we are not foreseeing any material closures in stores. We have a lot of lease events coming up. I will give you a couple of examples. We launched a big new store in Trafford last year, we did a big store in the Metro Centre where we took two stores to one, we just moved out of Southampton West Quay and then put a store on the High Street, that is performing very well.

“It is just about getting the portfolio of stores right at the right cost base, that can engage with the gaming communities in those locations. We still don’t have a loss-making store in the UK, which is still a very proud statement we can make.”