Game Christmas like-for-likes rocket 90% driven by consoles

Game recorded an 83% uplift in total sales over the six weeks to January 4, ahead of 53% growth in the market, according to GfK Chart-Track figures.

The launch of two new consoles, namely Microsoft’s Xbox One and Sony’s PlayStation 4, spurred sales over the period.

The retailer, which is advised by Henry Jackson’s private investment firm OpCapita which has a minority stake in the business, said online sales rose 213%.

The retailer said improvements to its website, mobile site and the introduction of a new app had driven online sales, as had the extension of its trade-in offer to online customers.

Game also benefitted from exclusive tie-ups with suppliers to offer one-off products or extra levels in existing games.

It has been reported that Game is close to hiring HSBC, Canaccord Genuity and Liberum Securities as advisors for a possible £300m stock market flotation. Game chief executive Martyn Gibbs declined to comment on the reports.

A float would be a dramatic turnaround for the retailer, which collapsed into administration almost two years ago.

Gibbs told Retail Week the increasing importance of digital releases and Game’s improve digital offer will help negate its reliance on big releases which led to its administration.

Gibbs said: “This strong overall performance for our second peak trading period was driven by our ability to capitalise on the hugely successful launches of Microsoft’s Xbox One and Sony’s PlayStation 4. This was supported by the release of well-received new games, significant growth in online and digital sales and the continued success of our pre-owned games offering.

“These figures also reflect the transformation over an 18-month period of the operational and financial profile of the business. Investments in store team training and a far-reaching store improvement programme meant we were well prepared for the launch in November of two long-awaited new consoles.”

He added: “Looking to the future, we see strong momentum in our industry and our business as the new generation of consoles and related products take hold. Meanwhile, we are continuing to invest in our digital delivery and expect to see revenue from digital content increase significantly in 2014 and beyond. Our brand strength and position as a hub for the gaming community leaves us well placed to benefit from both trends.”

Gibbs said he was confident margins were strong over Christmas after planning for the key releases.