JAN. 13, 2009 • With 30% of the retail game market in the U.K., Game Group reported sales grew 9.5% for the 50 weeks ending Jan. 10. The retailer said it benefited by the closure of Woolworths’ stores with an influx of women customers. Women now account for one in two Reward Card members, and 39 percent of all customers. Given the worldwide recession, Game Group said it would slow its new store growth to 70 for 2009, compared to 200 in 2008.
Impact: The Game Group is a leader in the U.K. with over 400 stores, but also has a growing presence in Western Europe and Australia. By the end of 2008, there were 1,161 stores worldwide. However, for a growing company in the growing game market, a sales increase of 9.5% is actually a little disappointing. Through much of 2008, the Game Group was a high flyer with a share increase of as much as 36% versus the start of 2008. This was at a time when share prices of most retailers were declining. However, since September, Game Group share prices have dropped 53% from the mid-year high. This is comparable to the average performance of retailers in general.
