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Supermarkets sell more games than any other retailers

by Mark Tyson on 18 November 2012, 21:30

Tags: Amazon (NASDAQ:AMZN), Sainsburys, Tesco (LON:TSCO), GAME, HMV

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Do you buy computer and video games in the supermarket? A new report says that supermarkets are the most successful games sellers in the UK. The supermarkets aren’t just beating specialist games retailers like GAME and HMV, boxed games are also selling better in the supermarkets than on the mighty Amazon. Although Amazon is catching up, its gains may slow as supermarkets sharpen up their own online offerings.

The latest 2012 figures show the big four supermarkets have 31.4 per cent, Game and HMV have 21.6 per cent and Amazon has 20.3 per cent of the market. See the full breakdown below.

Entertainment Market Share (Source: Kantar Worldpanel)

 

12 w/e 02 Oct 11

12 w/e 30 Sep 12

Percentage point change

Amazon

16.9

20.3

3.4

HMV

16.7

16.1

-0.6

Tesco

14.5

12

-2.5

Asda

11.1

9.9

-1.2

iTunes Music

6.3

9.1

2.8

Sainsbury’s

4.6

6.6

2

Play

3.5

3

-0.5

Morrisons

3.8

2.9

-0.9

Game Group

8.1

5.5

-2.6

Other

14.5

14.6

0.1

 

Games industry news site MCV saw this latest Kantar Worldpanel report and spoke to Craig Thirkell, ASDA’s games boss. “We are in an economic climate where money is tighter than ever. Customers demand the lowest price and this channel has always been focused on delivering this,” Mr Thirkell explained. But it’s not ALL about the price, suggests Thirkell “It’s not just the specialists that can create excitement and fun for new launches anymore and with gamers coming out at midnight for the big titles, where better to be than in a warm supermarket topping up on the energy drinks and sweets to get them through that all-night games marathon.”

However it’s not ASDA but Sainsbury’s which has done the best out of the supermarkets and was actually the only one to grow its market share. That’s pretty good going in this declining sector and is probably a result of competitive pricing and bundles and its launch of a standalone entertainment website in the last year. Amazon is still the biggest single games retailer with 20.3 per cent of the market.

Supermarkets dominate DVD film retail too

Another report, yesterday in Variety magazine, says the big four supermarkets control about 40 per cent of the UK’s DVD retail market. Special offers to customers who spend a certain amount on groceries means that some films can be sold below wholesale price. Variety says that “Harry Potter and the Deathly Hallows: Part 2 was virtually given away by one chain for £3 to shoppers who spent £50 on groceries.” Similar but less drastic incentives are offered on games and gaming hardware bundles.



HEXUS Forums :: 9 Comments

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Halo was £5 cheaper in Tesco than GAME. Since I happened to be in GAME before going to Tesco (and wouldn't have bothered going to Tesco if the difference were much less), that lost them a sale.
(They refused to price match)
So, 4 large supermarket chains that millions of people have to visit each week for groceries have a combined sales total higher than 1 retailer which has no other draw than when somebody actually wants something? Quelle surprise!
The inclusion of iTunes Music on this list confuses me - what kind of games do they sell?

Also, if you're going to group similar stores together, the stats show that online retailers (Amazon, Play, iTunes Music) sell more (32.4% of market share) than the supermarkets (31.4%).
xeryus
So, 4 large supermarket chains that millions of people have to visit each week for groceries have a combined sales total higher than 1 retailer which has no other draw than when somebody actually wants something? Quelle surprise!

If the pricing in Game were right then I would still buy my games from there even if my local Supermarket carried the same game.

miniyazz
Halo was £5 cheaper in Tesco than GAME.
I think this is the main reason that people go to Supermarkets (who don't carry a lot in the way of PC games). I think if Game are to survive the long term then they need to look at what they can do to win back customers from the large supermarket chains and I don't think their loyalty card and occasional exclusive pre-order bonus deals are enough to do justify an extra 10% to 15% spend on what is essentially the same game from a supermarket without the exclusive camo, gun decal, early access to weapons or better guns for the campaign mode.
Midnight shelve stocking for new titles probably doesn't hurt the supermarkets either.