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GameStop Corp. Message Board

  • danielwilkins21 danielwilkins21 Jan 9, 2009 7:15 PM Flag

    GME beat BBY on vg comps...

    Best Buy reported *lower* video game SSS.

    "Video game same-store sales fell by the mid-single digits, primarily due to a shift toward software and reduced sales of large-ticket consoles, in addition to unfavorable comparisons with stronger results last year."

    http://homemediamagazine.com/news/best-buy-sings-december-blues-14293

    Since we know from NPD that the industry is growing, and that GME did very well, this indicates that GME is preserving market share. I would expect GME's market share to be flat or decline slightly for *new* game and console sales, b/c of competition from the big box retailers and Amazon. Of course, SSS do not take into account new stores, but I don't think enough new stores have opened for GME's competitors to have a big enough effect on market share (and, of course, GME has been increasing market share in faster-growing non-USA markets).

    The upshot of all this is that perhaps new gamers and gift-givers are going to Gamestop. Obviously, more people are buying more vg games, but not at Best Buy, apparently.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Also...

      GME's SSS increase vs BBY's decrease (in video games/consoles) could also suggest that consumers are seeking the selection and customer service that GME offers. Parents and grandparents who don't know exactly what to get for their Wii, XBox360 or PS3 using relative seek the kind of customer service that you don't get at a BBY, Walmart or Target. I've seen savvy GME employees warn gift-givers about GTA-series game ratings and content. They tell the gift-giver, "you could buy them X instead, or just get them a gift-card so that they can get the gift themselves or from their parents." See if you get that kind of service at the big-box retailers.

      Another thing...

      BBY claims that part of the problem with their vg SSS is that last year had a lot of high-ticket item consoles, but this year didn't...that just doesn't make sense in light of the Wii and Guitar Hero sets. If anything, they should report higher sales (but lower margins) with increased console sales from the Wii and discounted XBox 360--and that's exactly what GME reported.

      I really thought BBY was the biggest threat to GME...so much for that thesis.

      • 1 Reply to danielwilkins21
      • From the BBY report,

        "The comparable store sales decline reflected a decrease in traffic"

        I could have guessed that before they updated their guidance. The economy sucks, and BBY sells higher priced items like HDTV's and stereo systems, so of course traffic would be down. When the economy picks up again, so will their traffic and their sales.

        The fact remains GME's SSS growth is far below industry growth, and far below last years figure.

        "I really thought BBY was the biggest threat to GME...so much for that thesis."

        I never thought that, nor have I heard anyone else think that, such as analysts or whomever.

 
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