85 GAME stores to be closed by 2013

GAME Group today confirmed that it plans to shave down its store count even further over the next three years.

Currently, the firm runs 635 stores across its two brands, GAME and Gamestation – after earlier this year closing 15 stores and 27 concessions.

But the firm expects to slim down further to 550 stores over the next three years to reduce more store overlap and cut costs.

In his statement as part of the firm’s half-year financials today – in which the firm confirmed a year-on-year dip in sales and revenues – chairman Peter Lewis explained: "We remain the clear market leader in the UK, with 635 stores across two brands. We will continue to manage our store portfolio with strict retail disciplines."

He said that up to 70 per cent of customers from those stores closed earlier this year transferred to another GAME store following successful direct marketing campaigns – something which should serve the firm well as it cuts back further.

"By Christmas 2013 we expect the UK store portfolio to have been reduced to about 550 stores as we reduce store over-lap and drive for greater cost efficiency," said Lewis.

The firm is also lowering the length of the leases it takes out on store sites.

"We are focussed on having an efficient operating lease profile. To do this we are lowering our average lease length, now five years across the Group compared to 7 years two years ago, and through rent reviews and renegotiation we are seeking year on year operating lease savings."

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