Gamestop losses grow in tough trading

PRETAX LOSSES widened at games retailer Gamestop in 2010 as tough trading and the poor economic environment hit trade.

According to the latest accounts for the firm which cover the year to January 29th, 2011, losses before taxation rose to €3.4 million, compared with just under €3.1 million in the previous year.

Turnover at Gamestop Group Ltd, which through its subsidiaries owns stores throughout Ireland and the UK, slipped to €61.95 million, down from €67.97 million in 2010. However, the figure was boosted by a cut in costs at the company, with the cost of sales and administrative expenses falling compared with the previous year.

The company, which has 55 stores on the island of Ireland, said it would continue to review the performance of its stores, opening new premises where it considered it would present a “profitable opportunity”. However, it also warned it would consider closing stores that were not performing to expectation, or where costs, such as rent, were out of line with other local businesses.

The average number of employees during the year was 419, compared to 428 in 2009.

Gamestop Group is 84 per cent owned by US-based Gamestop, which has a network of more than 6,600 stores in 17 countries.