Game and Argos’ market share boosted by major game releases
Game and Argos have reported increased growth in physical entertainment market shares for the 12 weeks to 13 January 2019, growing faster than the rate of large online retailers such as Amazon and Ebay.
According to the latest figures from Kantar Worldpanel, sales of games, videos and music at Game and Argos’ increased by 1.5% and 2% respectively, compared with 0.6% and 0.8% at Amazon and Ebay during the period.
Both retailer’s recent success has been shaped primarily by sales of new video game titles. Much of these have transferred from supermarkets, which accounted for 49.7% of gaming sales compared with 61.5% this time last year.
Among new gaming releases, wild west-based adventure video game Red Dead Redemption 2 was the “major success story” in the most recent period. The group said the “long-awaited sequel” accounted for 21% of sales online and in store and “had a major impact on the overall value of the sector”.
The group added that with most retailers opting against putting the title on promotion, shoppers were left with “few options but to pay full price”, boosting the average spend across the category.
Giulia Barresi, consumer specialist at Kantar Worldpanel said: “Consumers really value the trend-led up-to-the minute offer which specialists provide, and supermarkets need to find a way to replicate this feeling. Entertainment aisles which don’t feel completely up to speed with the hottest new releases won’t attract footfall.
“It’s important for grocers to show that they too are specialists who understand the sector – whether that’s by giving space to accompanying merchandise or stocking a wider range of games.”
Barresi added: “Red Dead Redemption 2 was a smash hit release for Rockstar Games and has had a major impact on the video game market since its release. More than half a million shoppers gave the game as a gift over Christmas, and the big price tag meant it made a substantial contribution to the market in the past three months.”
