UK games retailer GAME has announced that it will close 100 stores across the UK after being hit hard by the growing popularity of online stores and digital distribution in the last year.
GAME CEO Lisa Morgan officially resigned earlier this week after a 28 percent drop in profits since last year. Morgan had been leading GAME for three years and has been temporarily replaced by former Ladbrokes CEO Chris Bell.
GAME has now announced that it will reduce the number of stores from 677 to 550 over by the end of 2013.
The company claims the drop in profits and closures are due to increased competition from supermarkets, online retailers and digital distribution. The closures are in addition to those announced last year, which affected 12 GAME stores, six GameStation shops and 25 Debenhams concessions, according to GI.biz.
"In December 2009 we closed 19 GAME concessions in Borders stores, and since the year end we have also taken the decision to terminate our concession partnership with Debenhams and announced plans to close 18 other stores," said GAME chairman Peter Lewis.
"Our strong customer base of Reward Card holders enables us to contact customers and transfer the majority of the revenues from these stores to the next nearest GAME or Gamestation. There will be no material costs from these closures."
Let us know your thoughts in the forums.
GAME CEO Lisa Morgan officially resigned earlier this week after a 28 percent drop in profits since last year. Morgan had been leading GAME for three years and has been temporarily replaced by former Ladbrokes CEO Chris Bell.
GAME has now announced that it will reduce the number of stores from 677 to 550 over by the end of 2013.
The company claims the drop in profits and closures are due to increased competition from supermarkets, online retailers and digital distribution. The closures are in addition to those announced last year, which affected 12 GAME stores, six GameStation shops and 25 Debenhams concessions, according to GI.biz.
"In December 2009 we closed 19 GAME concessions in Borders stores, and since the year end we have also taken the decision to terminate our concession partnership with Debenhams and announced plans to close 18 other stores," said GAME chairman Peter Lewis.
"Our strong customer base of Reward Card holders enables us to contact customers and transfer the majority of the revenues from these stores to the next nearest GAME or Gamestation. There will be no material costs from these closures."
Let us know your thoughts in the forums.
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