High Street leaving behind old guard of retail as industry finds new routes to market
The ghost of EUK is still haunting the High Street – with WH Smith this week telling MCV that it is to ditch entertainment products – but it seems there have never been more opportunities for games companies to take advantage of new routes to market.
WH Smith, one of the UK’s longest-running retailers, was caught up in supply problems following the collapse of Woolworths and its distribution subsidiary EUK at Christmas.
And a paucity of stock has not only driven consumers elsewhere, but sparked the firm to re-evaluate its status as an entertainment provider.
“The EUK collapse did not come as a complete surprise to us, although the timing was particularly unhelpful,” a WH Smith spokesperson told MCV.
“Long-term trends in entertainment look set to continue. We are continuing to implement our strategy to reduce our presence in entertainment to focus instead on books, news and impulse and stationery.
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“We are committed to providing our customers with a tailored convenience offer.”
It might not sound convenient for publishers who sold their 360, Wii, PC and PlayStation games through the chain. But the news won’t trouble them too much, as retailers such as Morrisons, Waterstones, John Lewis, Next and Borders have all stepped up to join the likes of GAME, GameStation and HMV to satisfy a fast-changing retail landscape.
Morrisons has told MCV that entertainment goods have been a key driver for growth – with game sales specifically booming at the supermarket chain.
“All entertainments goods are performing above plan, but gaming is outperforming DVD and music as would be expected with the current market dynamics,” games buyer Jon Biggs told MCV.
And with the firm having switched to using Music Box Leisure as its permanent entertainment distributor in the wake of EUK’s collapse, the supermarket is now poised to boost its games offer further.
Biggs added: “All our new and re-fit stores have increased space for gaming which is internally recognised as a very important part of Morrison’s non-food offer.”
Meanwhile, Waterstones has beefed up its games offer, now offering Nintendo’s Touch Generation range in over 100 of its book shops across the UK – a third of its stores.
Borders is another bookseller also looking to tap into the booming games market via its GAME concessions.
The firm’s head of retail operations James Sneddon told MCV that he’d “like to see a GAME in every Borders store, much like we have a Starbucks and a Paperchase in every store.”
And MCV understands clothes retailer Next is eyeing a move to start offering games in-store this year after a successful two years selling hardware and software through its catalogue and online store.
Comments
Wow
WHSmith sold games?
simply put - no
I didnt even know that they sold games in the first place. The market is competitive and retails should stick to their core business rather than trying to put their fingers in different pies, only to get burnt.
Re: simply put - no
The local Oxfam has a better selection of current titles, WHSmith will certainly not be missed for games purchases. They should stick with what they are good at papers/magazines, books and stationary.
Re: Re: simply put - no
This is the beginning of the end, do I see another Woolworths situation coming on?
local smiths
My local Smiths in Newport hasn't sold games since just after christmas, they're now selling off all stock no box for £2 a piece, my sister picked up COD4 earlier at that price.
I think it's a shame as sometimes they had some good stuff.
Oudated
WHSmith charge too much for their games and only ever support the market leader in most shops, so last generation PS2 and now Wii. They can't compete and they're really lucky to not be in the same position as Woolworths.
Games what games?
I used to work in WHSmith and they didnt sell any games at all only a few dvds and thats about it. The store is more of a newsagent/stationary/bookshop.
I hope this store goes under! Grrr!!!
Re: Games what games?
This is a shame given Smith's history selling games - they were the only place except Dixons where you could get Spectrum and C64 tapes! Not exactly a loss in today's Market though.
Re: Re: Games what games?
As klemkorp says, this is a shame given Smiths' history in the market as a games retailer - say what you want about it now, but it used to be a force comparable to GAME. Of course, things have changed now. Take my local shopping centre - in Lakeside you used to be able to buy games in four or five shops, GAME, Thatz, Woolies and Smiths. Now it's GAME, Thatz, HMV, Waterstones... how long until the shop that sells cookery equipment starts selling Nintendo's Cooking Guide and Cooking Mama?
Re: Those were the days!
After Ketts,great range of Atari 2600 titles,some at discount,getting Defender in only 3 months when I've saved enough money(Mummy says only if I good for my birthday)got to go, Dr Brown waiting for me in DeLorean.
Re: Re: Re: Games what games?
As with Woolworths, if you see the price of games in WHSmith, it's no wonder they're ditching them. Retailers need to wake up to the fact that online retailers are taking over, GAME will be one of the next stores to go in the future, more so when games change to download only.
Re: Re: Re: Re: Games what games?
@ 7 'hope this store goes under! Grrr!!!'
Oh yeah thats great...you hope thousands more people lose their jobs! Come on even if you don't like them it's not really the attitude to have...personally i would never wish that on any company
Re: Re: Re: Re: Re: Games what games?
As an indie retailer, I don't find this news a surprise or the further rise of non-specialists threat - but I am sceptical about the notion that other stores are widening the remit to include gaming goods permanently. I think Morrrisons, Bordars, etc will just see it as a fad - a way to catch casual customers with games that are currently 'in fashion'.
I also worry that this means publishers will switch to serving this audience only - Nintendo is lucky in that games like Mario Kart can be enjoyed by all, but other publishers make titles which just serve new kid/non-gaming adult groups. What will happen to these ranges if consumers just get bored of them in a year or so? And what if publishers divert their resources to make games for market that is fast becoming oversaturated?
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