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GAME Stores Face Closures

GAME Stores Face Closures

UK retailer GAME has made headlines again by announcing that it will be closing over 100 outlets by the end of 2013. The news comes after a 28 percent drop in profits, which lead to the resignations of CEO Lisa Morgan and COO Terry Scicluna.

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That will reduce the number of stores from 677 to 550. The reasons for such drastic closures seem to be competition from supermarket retailers and online mail-order services, according to a summary by GamesIndustry.biz. The GAME chairman, Peter Lewis, said of the move:

“We continue actively to review our UK store base, with a view to minimising store overlap and maximising opportunities from lease expiries, breaks and rent reviews.

Our average lease length of six years for our UK stores is an advantage. By Christmas 2013, we expect the UK store portfolio to have been reduced to about 550 stores. In addition, we are investing to create the leading PC and video games website and download service in the UK.”

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