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GAME posts record first half profits

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GAME posts record first half profits

Total Group sales growth of 54.1 per cent; More stores and concessions on the way

UK retail’s leading games specialist is in rude health, having revealed its interim results for the first six months ended July 31st 2008.

The main highlights were record first half profits of £36.4m before non-recurring costs and tax, total Group sales growth of 54.1 per cent and a like-for-like sales rise of 22.2 per cent.

The results also emphasised good international performance with sales up 64.2 per cent and like-for-like sales up 17.4 per cent. GAME Group is readying an acquisiton of a specialist chain in the Czech Republic, which will boost the Group’s presence there by an extra 19 stores.

Meanwhile in the UK, a 33 store concession deal with Borders will give the chain another boost. Gamestation integration is progressing ‘better than anticipated’ according to the financials, with the Group on track for £9 million worth of synergies in the current year – an increase of £2m from its prior guidance.

GAME Group aslo revealed that its store portfolio will be over 1,300 by the key Christmas trading season compared to 1,150 at the same time last year.

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Given the glowing financials, it’s no surprise to see GAME Group raise its guidance on full year like-for-like sales performance from 5-10 per cent to 8-12 per cent.

“The business has performed extremely well with both turnover and profit growth throughout the Group,” said chairman Peter Lewis.

“We deliver a compelling customer experience. Our specialist proposition is centred around customer service, our pre-owned offer, our Reward Card and our online capabilities, all of which have contributed to this success.”

“The third generation consoles are all in good supply. Demand has continued to be strong and the installed console base now stands at over 17.3 million in the key UK market.”

“This level of console ownership has been achieved in just three years compared to second generation consoles which took a seven year period from 2000 until 2007 to reach similar levels.”

“We recognise the extraordinarily challenging and uncertain market conditions in which we are operating today, and we cannot be immune to wider economic uncertainties.”

“However, we continue to be encouraged by the ongoing demand for third generation hardware and software which is in part being driven by the broadening demographic appeal. In addition, playing games provides a more affordable alternative to many other family leisure activities and we remain committed to delivering our customers the widest choice and value for money.”

Tags: game, retail

Congrats, but...

posted by Sep 30, 2008 at 10:47 am
1

"We deliver a compelling customer experience..."

No, shopping at GAME is far from being a compelling experience, unless of course one considers a 'compelling shopping experience' to consist of being harrassed by clueless staff who's only goal is to ram as much unwanted and unecessary crap down the customers throat as possible.

Shopping at GAME is like shopping at Dixons or Currys. Great for the not-so-clued up mass market who don't know their arse from the elbow, but for you're more savy customers it's a truly horrible experience, which is why I no longer shop there.

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Re: Congrats, but...

posted by Sep 30, 2008 at 10:58 am
2

If it wasnt for Nintendo they would be bust

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Re: Re: Congrats, but...

posted by Nathan Sep 30, 2008 at 11:10 am
3
Nathan

Record profits? Fantastic, now start paying your staff fairly...

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Re: Re: Re: Congrats, but...

posted by Zildjian Sep 30, 2008 at 12:06 pm
4

@ 3 - That is why they have record profits... Low overheads.

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Re: Re: Re: Re: Congrats, but...

posted by Sep 30, 2008 at 12:50 pm
5

@ 4 - you work in a shop correct? then that'll be why your wage sucks. If you don't like it leave!

Retail has always paid low and that aint ever gonna change.

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Re: Re: Re: Re: Re: Congrats, but...

posted by Sep 30, 2008 at 12:58 pm
6

GAME's shop floor staff wages, as with the majority of retail, has always been very poor. Employees selling a product that is generally beyond their own means to make other people rich. Capitalism at it's finest.

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Re: Re: Re: Re: Re: Re: Congrats, but...

posted by Nathan Sep 30, 2008 at 1:43 pm
7
Nathan

My old store manager was on less than £20k. Considering the workload (particularly around Christmas), this seems very unfair - and low in comparison to other retail chains.

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Re: Re: Re: Re: Re: Re: Re: Congrats, but...

posted by Sep 30, 2008 at 2:07 pm
8

When i worked at game i felt sorry for kids trading in there games - they were getting robbed. Of course they didnt have to do it but sometimes it was the only way they could afford new games...

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Re: Re: Re: Re: Re: Re: Re: Re: Congrats, but...

posted by Zildjian Sep 30, 2008 at 2:15 pm
9

@ 5 - Sorry mate, wrong assumption, I don't work in retail.

Idd, if someone is not happy with their wage they could leave, but arguably retail is all some people can get without moving further down the emploment ladder, not always as simple as "if you don't like it quit"

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Re: Re: Re: Re: Re: Re: Re: Re: Congrats, but...

posted by Jay Sep 30, 2008 at 2:21 pm
10
Jay

Yup they make an absolute killing of trade-ins its a shame they dont try sell stuff online themselves as they could make more money back.

@1 even us non-clueless staff were ordered to badger customers at every opportunity, I could tell when someone was in need of help/advice but I'd get earache off management if you just left them alone, disgraceful.
Dont work there now thank god as I hear the beauracracy has got even worse.

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Re: Congrats, but...

posted by Joey Sep 30, 2008 at 2:53 pm
11
Joey

It's interesting for what they don't say about their UK numbers....

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Can anyone point me to the bit where...

posted by koti Sep 30, 2008 at 6:34 pm
12

What affect has growth had on percentage margin?

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Re: Can anyone point me to the bit where...

posted by Bob Sep 30, 2008 at 7:03 pm
13
Bob

who thinks it'd be amusing if.....

they couldn't refinance their £280m debt?

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Re: Re: Re: Re: Re: Re: The real game piracy

posted by stoney Oct 01, 2008 at 12:58 am
14
stoney

be interesting to see what happens to there sales once other retailers such as Blockbuster, zavvi and the supermarkets get more of an impact on them.

But i guess they do make more money with their rubbish trade in prices and then put it out overpriced which nobody else could get away with.

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Re: Re: Re: Re: Re: Re: Re: The real game piracy

posted by Smithy Oct 01, 2008 at 11:05 pm
15
Smithy

All this negative feedback gets no one nowhere. Im not being funny but to record profits like they have, they must be doing something right. You don't make money like that with terrible stores and service. Yeah ok, so occasionally you might not get the service you was expecting but i would say the majority are very happy with the service they recieve. Stores that really do struggle with custom are the store that are fading badly. CEX went a month without paying staff because they made no money. Blockbusters had to sell their most profitable asset because they had no clue how to progress.
I would say that Game do a very good job in the market. I shop at Gamestation weekly and i certainly have no complaints with the service i recieve. Espically as they do have a price promise so i know i always get my games the cheapest they can be.

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