Electronics Boutique looks to Europe for growth
Leading US games retailer Electronics Boutique expects aggressive expansion into Europe to be one of its key growth drivers in the current financial year, with a major store opening drive planned in Germany, Italy and Scandinavia.
Leading US games retailer Electronics Boutique expects aggressive expansion into Europe to be one of its key growth drivers in the current financial year, with a major store opening drive planned in Germany, Italy and Scandinavia.
Speaking at the Banc of America Securities Consumer Conference yesterday, EB president and CEO Jeffrey Griffiths and CFO James Smith announced that the firm plans to double - around 150 stores - its number of outlets in continental Europe in FY06.
The new stores will be spread evenly between the key territories of Germany, Italy and Scandinavia, and EB expects this expansion in continental Europe to be a growth driver for the company's financials in the current year.
Griffiths' comments came after the retailer announced strong results for the fourth quarter of FY05, with net sales up 21 per cent to $809 million, while same store sales rose some three per cent, and EPS came in at $1.64 - slightly ahead of the consensus projection for the firm.
EB, which has no outstanding debt and cash or cash equivalents of around $175 million, is well positioned for expansion in Europe - but it isn't the only major US retailer eyeing European shores, with rival chain GameStop also rumoured to be considering a further move into this region after dipping its toe in the water with the acquisition of Irish chain GamesWorld in 2003.
So far, however, neither company has made a move into Great Britain, the home territory of Europe's largest retailer, GAME - which also has major plans for expansion throughout continental Europe.