Game aims to 'outperform' despite profits fall

The retailer posted full-year underlying pre-tax profits of £37.8m – in line with expectations but sharply down from the previous year’s £90.4m – on sales marginally down from £1.77bn to £1.63bn.

Like-for-likes slid 6.7% in the period, to January 31, but the retailer said it had outperformed the market, which was down 9.9% in aggregate.

Game is initiating a new strategy under the leadership of chief executive Ian Shepherd.

He wants to turn Game into a multichannel specialist with more emphasis on unique product, closer customer relationships.

Shepherd said: “Game is on a journey. Our customers have new and different ways to buy and play video games and we need to make sure our business provides everything they want, wherever they want it.

“Today, no other business does this for the gamer. We plan to be the first.

“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.

“Our strategy is designed to do just that. I’m encouraged by the good progress we’ve seen in the early months of the year.”

In the 12 weeks of the current year Game’s total sales plunged 14.3% and like-for-likes declined 12.1%. In the core UK and Ireland market the falls were14.9% and 12.4% respectively, which the retailer said represented market outperformance.

Shepherd said: “In the longer term we are putting game in the right place to deliver the strongest returns as the industry continues to change and evolve.”