GameStop Abandons U.K. Stores

[Greg Tito]

GameStop Abandons U.K. Stores

The U.S. based retail chain closed its last stores in Northern Ireland this weekend.

Until recently, GameStop had quite a few stores in the United Kingdom but the retailer is closing up shop. Customers dropping by stores in Newry and Belfast this weekend saw shutters closed and flyers redirecting them to the GameStop UK [http://www.gamestop.co.uk/] website for all commerce from now on. GameStop representatives have gone on record saying the closures were all part of the plan to serve British customers via the online portal only. Apparently, that plan doesn't include stores in the Republic of Ireland, as all of those stores are unaffected.

"We are transferring all of our UK business on-line," the flyers all read. "We will honor all outstanding deposits and gift cards."

GameStop said that the closures are a calculated move. "The recent store closures in Northern Ireland are part of our plan, announced six months ago, to exit the UK market from a brick and mortar perspective," said GameStop's commercial director Michael Finucane.

"We started this process last year closing our Birmingham, Stockport and Belfast locations," he said. "Correspondingly, we have experienced tremendous sales growth on our UK ecommerce site. Our go forward plan is to serve the UK market with enhanced digital and online offerings."

I'm not sure if there are political motivations behind this withdrawal, but the borders seem to suggest something going on behind the scenes. Why would GameStop abandon one territory when it is clearly successful in Ireland already with 20+ stores? Why stop at the border?

Source: MCV [http://www.mcvuk.com/news/read/ni-closures-part-of-the-plan-gamestop/090197]

Permalink

 

[VanityGirl]

That seems unusual.. Not making money I guess?

 

[The Last Nomad]

Good thing the Irish (republic of, that is) stores aren't closing. Thats the only place I can get reasonably priced games.

 

[Sovvolf]

I never knew we had a Gamestop in Britain. Learn something new everyday.

 

[Kopikatsu]

Wasn't that where the truck holding a shipment of Modern Warfare 3 got jacked? If so...they're probably like 'Jesus, these people are insane. ABORT, ABORT!'

That might have been in France, though...

 

[Dogstile]

I never knew we had a Gamestop in Britain. Learn something new everyday.

Same here. Thinking about it, that's probably why.

 

[Ruairi iliffe]

Why stop at the border?

As someone who lived in Belfast and had family in Newry, i'd say it was a long time coming. There are already 2 GAME stores in Belfast right by the Gamestop, and the Gamestop had 2. Also it was really crowded in that part of the city ontop of Gamestop having poorer Sales and deals (pre-owned where waaaay to expensive) Us Northern folk tend to be a picky bunch so GAME usally gets more sales and crowds.

 

[LavaLampBamboo]

One would imagine this probably has something to do with the Euro and the Pound, but I have absolutely no idea what, cause all economic stuff eludes me.

 

[AdamG3691]

*reads title*
We have gamestop?

 

[FamoFunk]

I never knew we had a Gamestop in Britain. Learn something new everyday.

Ditto.

We have GAME and GameStation anyway, we don't really need a third games shop.

 

[Albino Boo]

I'm not sure if there are political motivations behind this withdrawal, but the borders seem to suggest something going on behind the scenes. Why would GameStop abandon one territory when it is clearly successful in Ireland already with 20+ stores? Why stop at the border?

Its very simple, Irish corporation tax is 12.5% and UK corporation tax is 26%. They will have their EU headquaters in Ireland and operate online sales from there, paying 12.5% less tax. Google and Microsoft do the same.

 

[Daystar Clarion]

I never knew we had a Gamestop in Britain. Learn something new everyday.

Ditto.

We have GAME and GameStation anyway, we don't really need a third games shop.

We probably do.

GAME and Gamestation are owned by the same company, so as such, they pretty much have a monopoly on game only retail.

It doesn't effect me though, I realised a long time ago that the brick and mortar stores rip off their customers, so I buy all my games online.

If you're looking for a great online reatailer, I'd recommend ShopTo.net.

 

[Zen Toombs]

And nothing of value was lost.

OT: I'm curious what the actual reason for GameStop leaving the U.K. For some reason methinks that monies are involved.

 

[Stalydan]

I live near Stockport and I can just say that there was no point in GameStop in the UK. In Stockport alone, there's like 6 other more popular chain stores that sell games near it. It's brand recognition. It's not popular over here so it's not used.

Feel sorry for the people who worked there though. When ever a shop closes, that's a few more unemployed added to the list.

 

[Terramax]

I never knew we had a Gamestop in Britain. Learn something new everyday.

Ditto.

We have GAME and GameStation anyway, we don't really need a third games shop.

We probably do.

GAME and Gamestation are owned by the same company, so as such, they pretty much have a monopoly on game only retail.

It doesn't effect me though, I realised a long time ago that the brick and mortar stores rip off their customers, so I buy all my games online.

If you're looking for a great online reatailer, I'd recommend ShopTo.net.

True. That being said, I think it's simply a matter of time before they throw in the towel also.

Not that I really care. They never sell the games I want to play.

 

[imnot]

eh, I prefered GAME anyway, their shop has a nicer colour scheme, play quiter and better music, have better prices and none of the staff have terrible facial hair.

Yeah I am biased, still it is a shame people will lose their jobs :/

 

[Dumori]

One more plus the the GAME strangle hold over games sales in brick and mortar in the UK. I don't think there is a games seller near buy not owned by them now. They also seem the be the ones behind the keeping of games of the UK steam store for a few months but there is no solid evidence towards this.

 

[ActionDan]

Didn't even know about Gamestop in Britain. Weird.

 

[Warthur]

GameStop failed in the UK because they never established a presence here.

- I have never once seen an advert for GameStop in the UK. Not online, not on TV, not on billboards. So far as I can tell they had barely any stores in the country, so unless you happened to live near one and walk past it you'd never know they were here.
- Too much competition. You've got HMV, Game, and independent stores (of which most reasonably-sized town centres will have at least one) for new games, and CeX and independent stores for second-hand. Plus most tech-savvy people would be getting their stuff online anyway.
- As far as I can tell they were never that serious about going into the UK market anyway. Not having any stores in Greater London at all suggests that they were just dipping their toe into the market before going for high-competition, high-rent locations. They gave it a test run, figured that they weren't getting good results, and left.

 

[RoyalWelsh]

What the heck?!...I honestly never knew GameStop had shops in the UK, i've certainly never seen one. :/

Oh well...