Video games retailer also has number of ‘profit boosting’ projects in the pipeline for 2016.
It issued a profit warning just before Christmas, but video games retailer Game has now reported that sales trends improved over the key trading period.
The retailer’s gross transaction value – reflecting full sales – was down 0.4% in the three-week period ending January 9, much better than the 6.7% drop seen in the first five months of its full year.
However, revenues in the UK declined more than 10.5% over the 24 weeks to January 9. In the three weeks from December 20, Game said revenues in the UK fell by 5.9%.
Game has now said that it has a number of ‘profit boosting’ projects in the pipeline for 2016.
The retailer is also confident about the solid schedule of new games releases planned for the second half of its financial year, while new customers should be attracted by technological advances, including the increased use of virtual reality devices.
Martyn Gibbs, chief executive of Game Digital, said: “As outlined in our previous trading update, recent trading conditions in the UK video games market have been challenging, impacting GAME UK’s peak trading performance.
“However, we have seen a better market and an improved sales trend over the last three weeks. The strong performance in Spain in the first 21 weeks of the year has also continued over our most recent trading period.
“We are committed to taking appropriate actions to respond to the market challenges that we face in the UK market. Alongside pursuing commercial developments we are focused on driving further operational efficiencies, and the group has already begun to implement a series of initiatives to deliver an improvement in the profitability of our UK business.”
