News
Asda targets market leadership
Jonathon Harker Aug 7 2008, 9:52am
Comments (9)
Grocery giant launches assault to be largest non-specialist games retailer ; Considering pre-owned games
Asda has outlined an ultra-aggressive battleplan in order to further grow its share of the UK games market – which could soon include pre-owned and own brand games.
The grocery giant revealed its plans and ambitions at the Asda MVG (Music, Video, Games) Conference in Leeds last week, to a packed audience of publisher and hardware executives, where it bullishly claimed that it will become “the largest non-specialist games retailer in the UK”.
Underlining the growing importance of games to the chain, general manager of music, video and games Fergal Gara stated: “While DVD was the cornerstone of our MVG business, games are expected to be there very shortly. Our games business will be bigger than our DVD business within the next six to 12 months.”
Following on from what Asda described as a record year for games, the retailer admitted that it is seriously considering own-brand software, plus a move into the pre-owned space.
“Another big question we haven’t yet answered is – should we consider the likes of pre-owned?” said Gara.
“It has some massive attractions for our customers and boosts the value proposition we have currently.
“We are a value retailer, so we might need a pre-owned offer as an entry point for customers.”
On the subject of own-brand software, Asda’s head of games Duncan Cross told MCV: “We’ve got to look at own-brand. That’s not an announcement, but it is something we’re considering.”
Additionally, the grocery giant revealed that it is exploring the possibility of digital downloads, saying “we need to get into that space”.
These revelations were delivered following a series of topline announcements by the retailer, which included:
* The new gaming store concept will be rolled out to 250 stores by this time next year;
* Asda is also looking to grow game space for family gaming, following an increase in space dedicated to the area of 20 per cent over the last year;
* Hardware has also been a big success for Asda, with 100 per cent growth in accessory sales year-on-year.
Comments
“wish they would”
Posted by: john ashby - Aug 7, 11:20am
i have to agree, makes me laugh when people say compete, how can you sell games that ASDA sells at our cost price, we would be closed in a month, this is why we always break street dates, always sell imports,and what ever else we can to survive, no one else is gonna support us so we have to support our own business,i dislike supermarkets selling products they have no knowledge of,at least they can deal with kids tryin to say a game is faulty when they have just completed it, and want a refund.
“ASDA”
Posted by: Michael Noble - Aug 7, 11:20am
if it wasn't for supermarkets, i wouldnt' be able to afford to buy games!!!!! Good on you ASDA!!!
“buy used and trade”
Posted by: paul anderson - Aug 7, 11:23am
just trade in you fool, its people like you who kill the high street and when there are no independants and only supermarkets its people like you who will complain there is no choice
“very sad”
Posted by: steve dobson - Aug 7, 11:32am
im afraid its only a matter of time for independants, with no support from suppliers and developers dont want to get involved, supermarkets will soon start to put the sqeeze on developers for lower priced games, the same way they put most UK farmers out of the running, shame really, i dont like large faceless companies running large sectors of business, its very sad
“Re: very sad”
Posted by: Beenum - Aug 7, 11:44am
Not to mention my ASDA doesn't even sell PC games any more - how does it expect to be the best?!
“Re: Re: very sad”
Posted by: Michael - Aug 7, 12:00pm
the argument is that you have got offer choice to customers, in the current climate why would you want to pay £10 extra for a game at expert outlets when you can get it cheaper high street retailers (not just supermarkets) and you've got ebay and amazon. Its not about squeezing suppliers - everybody has to make money including the supermarkets and they will make a profit otherwise whats the point>>>>> try not ripping us off by selling new games at such a high price then you can compete with the market
“Re: Re: Re: very sad”
Posted by: Jon - Aug 7, 12:58pm
For independents it is not about "ripping people off" as "Michael" claims, its about not being able to compete with the supermarkets selling a product at cost price or just above and then relying on people buying other higher margin products to make their money. Specialists need profit to come from what they specialise in to survive. Try asking Asda staff how to sort out wireless Xbox Live, or getting an exchange on a game for PC that you cannot run - you'll get nowhere. As for Asda moving into preowned - like HMV they will look at it, and it will remain like that. They can barely staff their entertainment desks at many stores all day, let alone dealing with a constant flow of trade, checking etc and the buying teams needed to back up the pricing/distribution etc to go with it.
“idiot”
Posted by: lee johnson - Aug 7, 1:33pm
sory micheal you are an idiot, the supermarkers generally sell games as lost leaders, they are sold at cost price, as they sell 2 million different products, they make profit on food and drinks items, its part of the whole experience, get you there and make you buy everything under one roof!!
i work in an indie and we dont sell at £10 more we try to make £2 per new title which is crap but the only thing we can do, so people trade in, we cant sell at cost price as we only sell games.
customers only see the price difference they dont understand anything else, this is how they get you in store with deals and low prices, tesco still announce profits in the millions, so they make it on food, drink etc, not games.
of course some people will just buy the cheap items but this is all part of it.
“Re: idiot”
Posted by: Ben Morgan - Aug 8, 9:53pm
Asda do not sell all games at cost price!!
The occasional first week price may be a loss leader but they need to make margin.
Economies of scale exist and asda take advantage of these. They get cheaper prices because they are supplied by EUK. Who also buy for Woolies, Smiths, Sainsburys, zavvi and morrissons.
Thats why they are priced cheaper than the indies.
Indies need to offer a better service and customer experience to justify the higher price.