Game Group sales up 54.1%

Source: Exec Digital UK

Date :30/09/2008 13:33:31

Despite the economic climate, Game stores and its recently acquired Game Station brand have reported record profits.

Game Group, Europe’s leading retailer specialising in PC and videogame products, has recorded a massive leap in sales and profits. The store, which sells both new and second-hand games with trade-in options, partly attributes its success to the much-awaited launch of the Wii Fit and Grand Theft Auto IV.

It has also been suggested that the group is profiting from the credit crunch, as the company stated its products were being viewed as a "more affordable alternative" to other family activities.

Like-for-like sales increased by 22 percent in the first two quarters, while pre-tax profits for the same period leapt from £2.7 million to £36.4 million. The chain currently has 1,150 stores, but expects to have over 1,300 by Christmas, as well as having concessions in 33 stores in the Borders chain.

Strong demand

Though Game’s share price has dropped recently as HMV tackles the highly-lucrative games market, it remains confident of overall demand.

“An expanded base of hardware in the market leads to more software being sold, both to the more traditional gamer and to new customers entering the market for the first time … The consumer appeal of PC and video games is broadening with more women and families, younger children and older people buying games in our stores," the company said in a statement.

Game’s stock price remained stable at £2.67 per share.