Retailer suffers after sluggish trading
Game Group has reported significant first-half losses today, despite pushing ahead with an accelerated continental expansion plan.

The PC and video games retailer announced a 5.4 per cent plunge in like-for-like turnover in the six months to July 31, blamed on sluggish trading and a lack of major games releases.

The group reported that recent trading improved slightly, with like-for-like sales down 4.4 per cent since August 1.

Although the retailer continues to suffer from shortages of the new Sony PSP console, recovery rests on future releases of key games and consoles such as the Nintendo Revolution.

Game chairman Peter Lewis expects this and the group's European presence to have a positive effect on profits next year. 'We have made strategic investments of£17.2 million in the infrastructure of the business and the continued expansion in Europe, to cement our market-leading position ahead of the next-generation console launches. The second half offers better opportunities, given the strong launch sales of PSP and the solid Christmas line-up.'

In July, the group acquired French video games retailer Addon SA for£4.7 million as part of its European growth drive

Game expects to have more than 295 owned and franchise stores in Europe and 410 stores in the UK trading in time for the Christmas season.

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