UK first quarter sales drop 15% at GAME
2010 profits at £37.8m; new product sales down as second hand, own-brand grows
Specialist retailer GAME has reported a 14.3 per cent decline in first quarter sales to April 23 2011, with like-for-like sales down 12.1 per cent.
UK and Ireland total sales were down 14.9 per cent and like-for-likes 12.4 per cent. The international business saw sales decline 15.8 per cent and like-for-likes down 14.2 per cent.
The figures come from GAME's full-year 2010 preliminary results, where second hand games, digital sales and own-brand product were the big growth areas, offsetting the decline in traditional mint items.
As expected, profits for the full year were down considerably, from £90.4 million to £37.8 million. Like-for-like sales were down 6.7 per cent.
Own-label product sales increased 36 per cent to £29 million, with pre-owned sales up 3.3 per cent to £386.9 million and digital sales up 27 per cent to £41 million.
However, new hardware and software sales were down over 4 per cent to £1 billion.
The company remained upbeat, noting that it needs to address new markets and consumers trends, outlining the need to stock more exclusive items and increase own-label products as well as push online growth.
"We are operating, however, in a very challenging economic climate and have a lot to do and a long way to go if we want to outperform the market by growing new revenue streams, " Ian Shepherd, chief executive said.
"Our strategy is designed to do just that, and our dedicated teams around the world are focused on delivering it. I'm encouraged by the good progress we've seen in the early months of this year.
The retailer has also appointed Chris Bell as its new chairman, with current chairman Peter Lewis set to retire. Bell has been on the board since 2003.