GAME reveals first sales growth in two years

Video game retail store Game has posted its first positive sales growth in over two years.

The retail group provided a trading update ahead of its annual general meeting, revealing that gross transaction value (GTV) was up 5.2% over the Christmas trading period and up overall by 3.8% for the first 23 trading weeks of the financial year to 6 January 2018.

Strong GTV growth was also achieved through sales of lower cost hardware, up by 25.8% over the Christmas period and up 22.7% over the 23 week period.

The group also achieved cost savings in the UK of approximately £4m, with further initiatives underway to offset the margin impact of sales mix changes in the UK retail business.

Martyn Gibbs, Game Digital chief executive, said: “This positive sales performance for our peak trading period was driven by our ability to capitalise on the strong customer demand for Nintendo Switch, the continued adoption of PlayStation hardware and VR sales, the launch of Microsoft’s Xbox One X and a more appealing lineup of new software titles compared to the same time last year.

“Over the peak period, GAME focused on its core trading in all channels across both its geographies in highly competitive markets whilst delivering further cost savings in UK Retail and made good progress with its strategic initiatives.

“These additional cost savings mean our performance remains on track; as ever our full year result will also be subject to continued availability of consoles, such as Nintendo Switch, and the timing and success of new game releases.”