GAME has now confirmed that it intends to close 40 stores throughout the UK.
In not the most surprising news ever, GAME has announced it will close dozens of stores in the United Kingdom, with 13 sites already having had notice served. The retailer has said that it will serve notice on "additional sites" in the near future.
GAME said dozens of stores are being closed due to the "challenging retail market" landscape. A growing gaming market and a shift in focus that included opening a range of Esports arenas in-store meant pre-tax profits, the loot drops before fix costs and guild tax, went up by more than 20% in January.
"We are working closely with homeowners across the United Kingdom to make sure we don't have to leave all 40 locations, which could lead to job losses".
GAME claims to have over 300 locations across the United Kingdom, so closing 40 of them isn't going to make a huge dent in the company's high street presence. However, we face a challenging retail market and GAME with its wide retail presence, restructuring needs and owners need to work with us to establish realistic and fair rentals.
Back in October 2019, GAME drafted in property consultancy firm CBRE to work out whether the number of shops it had in the United Kingdom needed to change.
The firm has been wholly owned by the Frasers Group since June 2019 after a buyout by Sports Direct for £52 million.
To get the GAME retail and Belong concepts right will also require a higher degree of flexibility than has proven possible under the current collaboration agreement.
There is no word from GAME on how many jobs could be impacted by the move.
"The structural and escalating shift to digital gaming and game streaming will have a significant impact on physical games retailers". Sports Direct believes that GAME needs to diversify and future proof its combination of products to keep up with technological developments and ensure that it is not irrelevant for customers.