What the title says really. Apparently, profits have dropped by 27% (Although they're still making money) so they've decided to close down 127 stores across the UK which will happen gradually. The CEO and COO have also left the company, which was announced at the same time so I'm guessing the new management wants to restructure. It's not all bad though as apparently, the continuing stores will be upgraded to an extent but this is still not good to hear.
Well, they really are at oversaturation in some markets. In Glasgow city center they have a store at St. Enoch's shopping centre at one end of Buchanan Street, the Buchanan Galleries at the other (they had just opened up still another on the same street at the Borders before that went tits-up), then a third a couple blocks from that one on Sauchiehall street. They also own Gamestation and there's one of those between the two GAME stores listed above - three stores in two blocks? And then there's yet another Gamestation on West Nile Street.
I'm pretty sure the only reason Gamestation is operating as a separate entity is to get around anti-monopoly laws, but they really seem to have too many stores. I can remember they even had a GAME store on each level of the Braehead shopping mall - who would do that? Fewer, larger locations would be a lot better; most of their shops are too small to have more than a fraction of their online inventory.
Sad news for those who will lose their jobs, but I've never been a fan of GAME. The shops are about as welcoming as the dentists, and as Sean mentioned, the stock on offer is usually slim (they've stop selling GC games in my local store, which I think is ridiculous).
Hopefully this means more independents will be able to take hold in some areas, instead of being crowded out by the big boys.
I know what you mean about Oversaturation, they have overdone things but still, it's sad to see that there will be even more job losses. In my town centre, in one road there's a GAME and further along, there's a Gamestation as well. There used to be a second GAME too elsewhere in the Town but that's gone now, replaced by a "Body Shop".
I think when Gamestation were bought up three years ago those in charge perhaps foolishly thought the boom would never end: old people would keep buying DSes, the PS3 would be massive and there'd be enough to go around for everyone. Now as you all rightly say there's two GAMEs and a Gamestation in every town and although they each pull in money, it's not a smart move for the consumer.
Around 70 stores were closed two months or so ago, and with the recent announcements of staff restructuring (which has affected people I know), I do worry about the future of those in the employment of GAME Group PLC.
Well, with less crap prices and better selection hopefully (judging by the HMV's I've been in anyway - though I did get Wii Speak and Ghost Squad at HMV for bargain prices; probably just a fluke).
You work at Gamestation, don't you James? Not at risk, I hope?
Obviously I can't talk about that here. I don't know any more than the original story anyway, but hopefully everything's going to work out just fine...
In Norwich, we have 3 GAMEs, A Gamestation and 2 HMVs. Within the last year, we lost a Zavvi and a GAME that was operating in a Borders bookshop. All around the City centre, mind you.
I think the shift to digital will take some time, but yeah, we'll see a winnowing of retail shops over the long term, though there may be some way to do a value add like having download stations as a way of getting people to buy downloadable content without actually directly connecting to an online shop - honestly I don't know why this doesn't already exist and it would be extremely useful.
Imagine a kiosk in a GAME or Gamestop where you could buy downloads written to an SD card that you could then slot into your Wii/DS and just copy in. Perfect for kids without credit cards or if you were out and about and didn't have access to WiFi for an impulse purchase. Tack on a small surcharge and it could be a winner.
I'm pretty sure the only reason Gamestation is operating as a separate entity is to get around anti-monopoly laws
Probably not, because the corporate group is viewed as a whole. This is a consequence of the single economic entity doctrine established by the European Court of Justice in C-73/95 P, Viho. It basically means that economic reality is considered rather than legal formality when determining what constitutes an undertaking pursuant to art 101 and 102 of the EC-treaty.
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Topic: GAME Closing Down 127 Stores by 2013
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