The Joy of CEX (and other brick 'n' mortar establishments) - The Bear and Badger

Tempy

Magic sandwiches?

regmcfly

Il Capuccin on GWR saved my life many times. Try the grand canyon.

Dinostar77

GAME announce closure of 40 stores.

We if they didnt overprice their games and sell tat then they might have a chance of turning the corner.

g.man

Nah. Selling games as a business in 2020 is nobodies business. It's a fucking miracle they've lasted this long.

LivDiv

Yeah its dying a death.
Apparently even Argos struggled this year sighting a drop in sales of videogames and toys.

Diluted Dante

Im astonished that landlords aren't lowering rents. The amount of empty storefronts on the high street surely means shops they aren't getting any rent for?

afgavinstan

Dante gets it. Those that instantly bleat "oh well maybe they should've lowered their prices" really don't fucking get it. As if its that simple

LivDiv

Some have reduced rents. I think what is difficult in that scenario is that when they lower rents for struggling retailers the other, more sturdy retailers ask for the same.

It is better for landlords to use rental money to reinvest in the area and/or host experiences that attract people in.

Reducing rent is just life support.

Really, looking at stores like GAME there is absolutely nothing to suggest their fortunes will turn around. They are providing a service that most people just dont want anymore.

Diluted Dante

I meant lowering them all round. You cant attract people in when half your storefronts are boarded up.

EvilRedEye

GAME are kinda losing their purpose to some extent. You can get new games from Argos. You can get used games from CeX. There's now a new generation of digital native parents that don't need semi-expert purchasing advice. The tat is available elsewhere and much of it is clearly not selling.

It's probably a challenging market for HMV as well but at least it's still a place certain people would theoretically shop at. They're the best (only?) place for new music and film media on many high streets. They have vinyls and those fancy K-Pop releases that the youth of today apparently love.

LivDiv

I dont know the ins and outs of every landlord's business but I suspect lowering rents across the board is something they can't really afford to do.

It is basically the same thing as asking Game to reduce their prices.

mistercrayon

I think they have to be a business that doesn’t try to Sell the same games that Sainsbury’s et al inevitably will. It’s tough because games are too expensive and the audience too proud of it’s savviness to allow something that will sell at RRP.

RedDave2

LivDiv wrote:

I dont know the ins and outs of every landlord's business but I suspect lowering rents across the board is something they can't really afford to do.

It is basically the same thing as asking Game to reduce their prices.

Yeah, but I get Dantes point. If half the street is empty, who will go there. So the remaining shops suffer less footfall and the cycle continues.

I also reckon a landlord can take a hit a bit easier than a shop. Especially if the other option is another vacant slot.

LivDiv

@Crayon
It's the way the industry is going.
Less and less money spent on games is being spent on physical items.
The supermarkets will stop stockingthem eventually when that square footage becomes more profitable selling something else, profit per square foot is analysed at a micro level.

LivDiv

RedDave2 wrote:

LivDiv wrote:

I dont know the ins and outs of every landlord's business but I suspect lowering rents across the board is something they can't really afford to do.

It is basically the same thing as asking Game to reduce their prices.

Yeah, but I get Dantes point. If half the street is empty, who will go there. So the remaining shops suffer less footfall and the cycle continues.

I also reckon a landlord can take a hit a bit easier than a shop. Especially if the other option is another vacant slot.

Depends on the store.
People arent shopping in Game anyway so if it is open or closed doesnt matter. The clientele liking don't do much shopping elsewhere either.

Other stores are worth keeping and might get rent reductions. Big department stores, stores that have plans on how to get back on track etc.

What is the value of keeping Game if it involves discounting rents for everyone else?

Like I say there is better value in attracting people into the area through other investments that drive footfall, which keeps the shops open on their own merit.
Or developing out of town shopping destinations, which appear to be the public's preference.

There is a point where a company can end up throwing good money after bad.

Diluted Dante

I'm not sure how correct you are on that point. When I worked at Game, our store was given a reccuring annual lease because the footfall we generated was so important to the centre, and they didnt want the company leaving.

Regardless, I'm not talking about Game specifically.

LivDiv

Well I am pretty certain the people at these large retail landlord companies have crunched the numbers.

I have worked with a fair few of them, they are shrewd businesses and know what they are doing.

They do work with retailers but there is a limit and poorly managed retailers or retailers with terminal models can't be helped.

davyK

Will be interesting to see if the Belfast GAME is closing. When I am in there people seem to be buying stuff. It's where I got a Harry Potter Trivial Pursuit for the daughters - at a good price too. Our CEX and HMV seem to be busy too by and large.

Rent is one factor but the commercial rates charged by councils is another. It's a main source for income for many Councils and funding cuts have probably forced them to raise them. But if they close then Councils get nothing.

JonB

I was amazed when I went into Game on Xmas Eve and the queue was only a couple of people. It would've been snaking around the shop in the past.

They even had some decent offers as well. So if they can't fill the shop then they really are fucked.

Dinostar77

I think there is a place for a videogame shop on the highstreet but the model needs changing. Personally and this maybe unrealistic, i would like the following:

1. In store prices to match the website prices
2. Stock retro games
3. Get rid of excessive merchandising tat
4. Playable demo pods of games that need promotion i.e. not fifa or cod etc as they sell regardless. Also playable PCs to demo test pc games on high end rigs.
5. Playable VR games, even at a few quid a go so you can experience VR.
6. If we are going down the "new 22nd century high street route", then an internal coffee shop, gaming stuff for kids that they can attend ie. Sat morning pokemon club etc. I see alot of this in out library on sat mornings.
7. A few racing simulators, again this can help promote sales of steerig wheels, seats, pedals, vr headsets etc.

Anyway thats all i can think of for now.

Bob

All good ideas but a lot of them need a lot of space .. I'm guessing that most high streets are already rammed with coffee shops.. what it needs is more interaction with knowledgeable staff that aren't trying to push disc protection on you.

davyK

Belfast GAME is in a prime location and I suspect its rent is high.

There are other locations it could get with more space but they must be getting the business. We had a GAME cull a while back but the city centre one rolls on.

poprock

I predict that we’ll soon start to see ‘brand experience’ stores for big gaming brands. There’ll be a Playstation Store on Oxford Street, or an Xbox Store.

They won’t even sell anything in-store, it’ll be a place where you can go and try the latest consoles out, and they’ll host launch events for new firstparty games.

There will be meet-ups, talks from devs, and celebrity meet & greets. You’ll be able to buy from their online stores while you’re in the shop and your games will be downloaded to your console by the time you get back home.

Diluted Dante

Dinostar77 wrote:

I think there is a place for a videogame shop on the highstreet but the model needs changing. Personally and this maybe unrealistic, i would like the following:

1. In store prices to match the website prices

I don't think the margins can support this

2. Stock retro games

Probably not worth it. Retro games would take up a lot of space, and pricing wise would likely be fuck all or insane.

3. Get rid of excessive merchandising tat

This is one of the things that's helping them plug the gap right now. My bigger issue is it's either shit stuff, or the cool stuff seems daftly expensive.

4. Playable demo pods of games that need promotion i.e. not fifa or cod etc as they sell regardless. Also playable PCs to demo test pc games on high end rigs.

I know in the past, EA paid to have FIFA on the pods, but I don't know if that's the case still. Staff would agree with you there, FIFA is the most pointless thing to have on, and I've sold consoles by being able to use the pod to demo a specific game. Main one I remember was UFC. Bloke wasn't even in to buy a console, and after seeing it, walked out with an Xbox One. As for high end PC's Belong Arenas have these.

5. Playable VR games, even at a few quid a go so you can experience VR.

They did this when PSVR launched, but it seems to have stopped. Belong Arenas have a Vive though that you can pay for an experience that someone takes you through.

6. If we are going down the "new 22nd century high street route", then an internal coffee shop, gaming stuff for kids that they can attend ie. Sat morning pokemon club etc. I see alot of this in out library on sat mornings.

Most shops don't have the space for this. I tried to do stuff like this, but it was hard to get a dedicated member of staff at times, and in some stores there's literally nowhere to do it. Again, if it's a store with a Belong Arena it's doable.

7. A few racing simulators, again this can help promote sales of steerig wheels, seats, pedals, vr headsets etc. Anyway thats all i can think of for now.

Again, space is the killer for this. That sort of stuff has amazing margins, but takes up a lot of space, and even more to demonstrate. It's the sort of thing that lines up with the direction the company was headed in, but post Sports Direct, I've no idea if this is still the plan.

LivDiv

@Poprock
That is spot on what is happening, along with brand run pop-ups and events.

davyK

e-Sports Direct.

acemuzzy

So Game are now charging £4.99 to post a disc. Boo.

But they'll give you a £5 if it's posted to a shop and you go collect. Groovy! And it even helpfully shows you nearest open stores... which are all almost exactly 150 miles away cos they're all in Wales cos of the lockdown dur...

Bob

Be going out of business again soon then and that’ll be the end of game retail on the high street

Bob

Ah... remember walking up and down the high street to get the best price on a new cd used to be hmv Woolworths WHSmiths and an indie

FranticPea

Heh. I had a loop of shops i would visit before deciding.

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