
MCV's Staff Writer waves the flag for the UK independent retail sector
Last month, in my cosy little corner of Cambridgeshire, my local independent closed down.
First Compute – as it was called – had been a fixture on the St. Neots High Street for longer than I can remember and its loss was felt by gamers throughout the town.
Although the achievements of the likes of Grainger Games shouldn’t go unnoticed, there is a sense that the handful of successful chains flatter to deceive a struggling indie sector. Nationwide, they are forced to beg, steal, borrow, import and buy from Tesco in order to stay afloat.
Some critics – quite rightly – argue that many indies do little to help themselves; renting stores down back streets and plastering their doors with Orcs and wizards, alienating the casual consumer.
And yet, how are independents supposed to capitalise on the casual phenomenon when copies of Wii Fit are as scarce as units of Xbox 360 Arcade? Is it any wonder that indies have turned to pre-owned and import software when they can’t buy the new stock in the first instance?
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The independent sector needs the support of the publishers and distributors – and much more than just window dressing competitions, POS and occasional special offers. Is it fair to trumpet the success of this economy-defying industry when we can’t even look after our own?
No-one is suggesting that these small outlets should get the same treatment and bulk offers as the big websites, entertainment retailers and supermarkets. But when an indie can pick up a new release from GAME for five pounds below the trade price, then you know something is terribly wrong.
MCV recently reported on the ongoing trend that has seen indie retailers sourcing all their stock from websites and supermarkets – this needs to be addressed, and not simply dismissed as ‘the way it is’. Ask any former independent record store owner about what happens when big business fails to support the little guy.
Publishers and suppliers may threaten action over importing, street date breaking and even piracy, but perhaps these threats should be replaced with greater respect for the independents – maybe that way indies will no longer feel the need to play dirty in order to survive.
Indies are unique in being able to offer excellent customer service, unrivalled product range, retro software and console repairs – and some are still holding out against the increasing competition.
Without them, the trade would lose a great deal – they just need a little helping hand. In these booming times, is that too much to ask?
To read the original version of Christopher's Dring's comment, click here.
Comments
Perhaps its time to look to the past to have a future
I for one would like to see Centresoft become the SDL or ZCL of the 21st Century. By that I don't mean them go bankrupt (which frankly was simply down to the collapse of Commodore in both the cases of ZCL and SDL).
SDL and ZCL specialised in supporting the independent retailers by offering tailored packages, stock rotation and co-branding opportunities. Ok this was in the days of the Amiga where evergreen add-ons and continual streams of customers buying not only software but accessories and the like were the norm. However some of you may remember the likes of the Astra game pack and the special game packs from SDL such as the Zool and Pinball Fantasies bundles which were specially negotiated to offer with machines through indies as well as SDLs own Silica chain, giving the indies more of a chance to grab market share against the chains in their high street. Perhaps its time for the return of authorised specialist dealers, who support specific formats but can offer stock that chains dont seem to ever carry (official PSP battery, replacement PSU or car charger anyone?)
Perhaps also something like ZCLs Calculus network - uniting independants a la the current Euronics centres for home electricals allowing them to combine buying power?
To be honest my past experience with the various distributors would immediately make me think Centresoft would be the best choice for such a venture, especially as the PS3 is in the ascendancy.
Just a few thoughts :)
Nothing will change...
The thing is if every supplier started selling it to us independents cheaper then GAME and Play would turn around and say we want it cheaper too. The trouble is that they buy it in so cheap and in such quantities that they can supply all the people that know about them, only if they run out do people come to us. I also don't think having your own distribution business so you can undercut everyone is fair either...eh em Shopto
Re: Nothing will change...
you should make centresoft drop their ridiculous delivery charges (under£50 - £25+Vat, Under £100 - £20+Vat, Under £150 - £15+Vat, Under £300 - £10+Vat) that is seriously one of the main reasons why we only occasionly use them
Re: Re: Nothing will change...
The only way for indies to compete is to unite. Much like 'The Chain With No Name' worked for Indie music stores. Pinnacle used to negotiate for 'em all, thus getting a better deal. But it's a lot of work for a distributer to work with hundreds of single entities who all have their own best interests at heart. An account managers nightmare!
Probably best you keep buying from Tesco and whinging about it rather than actually doing something
Re: Re: Re: Nothing will change...
but buying from Tesco sorta defeats the object...We're meant to compete against them not with them, if only there was a distributor willing to give good prices on UK Stock and a fair delivery policy...
Re: Re: Nothing will change...
What do Indies want?
Triple A titles? GTA? MGS? Halo? Wii Fit?
or
Movie Tie Ins, cartoon tie ins, All star Sailing? kids games?
If pricing moved to more acceptable levels would the average Indie take Triple A AND the tie ins and down right ridiculous titles? In my experience of supplying Independant retail and Major Multiples in all forms of business the indie just wants to benefit from the blockbuster big name be they games, DVD's, eletcrical goods etc.
Re: Re: Re: Re: Nothing will change...
The Tesco thing was a joke. Thats all you get from indies. I buy from tesco, it's a crime!
What really makes me chuckle is, doing so drives up their market share and gives them more ammo to drive down prices. Its evil genius!
Re: Re: Re: Nothing will change...
what do we want? well the thing is we would like to compete with big names like Play - for example Battle of the Bands by THQ - Advantage were more expensive than Play, and most people who know about Play are going to buy from them coz they're so dam cheap!
Re: Re: Re: Re: Nothing will change...
exactly what i was saying...Tesco shouldnt be getting trade from us...if we stopped they'd probs lose quite a lot of business from gaming...
Re: Re: Re: Re: Nothing will change...
They don't have the over heads of standard retail therefore can be more flexible with margin.
This is all academic anyway. Big chain better price. Always has been, always will be.
Re: Re: Re: Re: Re: Nothing will change...
Lol...I think i'll start up my own distribution business so I can sell stock to myself for next to nothin...anyone wanna join me...
Re: Re: Re: Re: Re: Re: Nothing will change...
not with your business accumen!
Re: Re: Re: Re: Re: Re: Re: Nothing will change...
lol cheers
Re: Re: Re: Re: Re: Re: Re: Re: Nothing will change...
UK coal mining - not viable business, closed down.
Local grocers - not viable business, closed down.
UK consumer electronics manufacturing - not viable business, closed down.
Non-viable businesses - closed down.
Indie games retail - get with the program. Close down now, before you lose your house. Get a proper job.
All other games retail - will be gone within a decade. Just think, all you indies who get proper jobs now will be that much better off with a 10 year head start in your chosen profession.
Re: Re: Re: Re: Re: Re: Re: Re: Re: Nothing will change...
I mean - I can buy a lettuce from Tesco considerably cheaper than I can buy it direct from the farmer. Do you see me complaining about that, complaining that I'm finding it very difficult to run my indie greengrocer?
No.
Because I'm not stupid enough to run an indie greengrocer. I can do apostrophe 's' properly, for a start.
Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Nothing will change...
I am an independent. I have two stores and I'm even trading on e-bay.
Six years ago I mainly sold new games. It was good business. I couldn't get the same deals as GAME and what not, but I understood that. But it was rarely the case (aside from the odd occasion) that I could get a game cheaper from a supermarket than I could off Centresoft. Most games were fairly priced enough that I was only ever a pound or two more than my rivals.
Back then I was receiving much love from Nintendo. No one no where stocked Gamecube stock. No one. Everyone had ditched it but me. Dixons, Argos, Choices, all my local rivals didn't want to know. I was there, providing Nintendo's tiny fan base with stock and sticking beside them.
Now, six years later Nintendo don't care. Only delivering the occasional 'treat' like a copy of Link's Crossbow Training. I know they're trying to reach a casual audience, but I was there when they needed someone to sell their stock... and if the bottom falls out of this family gaming malarky I won't be there to help them again.
I decided a few years back to sell only pre-owned games, imported stuff, t-shirts and some stock bought from supermarkets if it's 'big'. But not the majority of it.
I know that this isn't helping the industry. But the industry won't help me. So sod it.
It makes me smile that MCV are trying, in their careful way, to get Centresoft, Nintendo etc... to help us out a bit. But you know what? It's a few years too late.
For me anyway.
Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Nothing will change.
you're right it is too late, thats the crappy games industry for you...
Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Nothing will cha
"But when an indie can pick up a new release from GAME for five pounds below the trade price, then you know something is terribly wrong."
Yeah, its wrong but been like this for ages now? Maybe this could of been brought up about 3 years ago??
"The Tesco thing was a joke. Thats all you get from indies. I buy from tesco, it's a crime! What really makes me chuckle is, doing so drives up their market share and gives them more ammo to drive down prices. Its evil genius!"
Hahahahhaha
Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Nothing will
Also using major retailers day one price as a comparision to your trade price is not an accurate indicator of the price the multiple has paid.
Usually week one will be a loss leader sold under cost just to get the customers in store and the retailers hope to make margin from add on sales, be that a tin of beans or a tips guide.
After the initail sales period the price of the game goes back to near SRP. Go into Game and Tesco today and see the price of back catalogue games (excluding discounted specials)
It's intresting becuase it's the sales technique they use on normal customers and is also working on the indie sector. You believe the games are always cheaper there becuase when you go there for a big release it is, so people believe they are always the cheapest and stop comparing prices.
Ther's no doubt they are buying stock cheaper but not as cheap as they day one price suggests.
Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Nothing
I´m an independant retailer from Sweden and, belive me, I really do understand how big a problem this is. I have been in business for about 15 years, and the good times are not as good anymore.
I honestly think that the best way, maybe the only way, is to unite. To try to bury the battleaxes and unite with our old competitors. We, here in Sweden, did just that and started Corestore AB in november 2005. We have one person who makes mutual purcheses och marketing for the whole chain of membershops (every independantshop is welcome to join). This of course gives us better prices and we are able to compete with the big chains like (couldn´t be bothered to write their names, sorry). Our sales haven´t skyrocketed beacause of this, but on the other hand the haven´t plummeted either as they would have if we still where alone.
Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Noth
hi all i know what u mean about the pricing game and the other big shots get,
i have just set up selling to others and i have been able to get a lot of stock and good prices i have sold 400 mgs to others maybe i can help
Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re:
Wow really? You sound like an honest businesman. That's great, let me know the details I have customer back orders for about 500 units!
LMK K ThX BY!
Nothing Will Change..
The sad fact is - Buy more and get more discount..
But, also, how many independants are taking a real business-like approach to these issues? Identifying thier strengths and building on them, identifying the multiples weeknesses and exploiting those?
With the exceptions of the bigger independants, probably not very many. Not everyone shops on price all of the time, what about expertise and service etc?
Why havent the independants joined forces to bring thier buying power together? I think its shortsighted that they havent.
The logistics of pooling this buying power are challenging, but not insurmountable...
Fredrick, I owuld be very interested to know more about the Swedish model (Fill in your own joke here!), can you tell us more?
Re: Nothing Will Change..
Mr Nice Guy,
The big picture is explained in my post.
We discussed the idea for abot 1 and 1/2 years before we finally did it. One of the big promoters of us doing it was an executive in a big global software publisher. The person helped us alot and we were told that the last thing they wanted was that the independants would seece to exist, because then the big chains would have to much power and could control the publishers more.
In the making of Corestore we looked at for example euronics which consists of small independantstores.
The members, every independantshop is welcome to join, pays a fee to join and then a fee every month. The discounts, that Corestore has, more than make up for the fees. There is no difference in discounts between the members depending on how much you buy, everybody have tha same price.
If you would like more information please mail me at corestorehelsingborgATgmail.com
hm... interesting..
ehh... luv it..
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