THE IRISH UNIT of gaming retailer GameStop is sitting on accumulated losses of more than €16 million, according to recently filed accounts.
The documents show that the chain – which sells physical video games, consoles and accessories and operates an online store – recorded a loss of almost €2.6 million in the 12 months to 28 January 2017, an increase of about €280,000 on 2016′s tally.
Accumulated losses at the firm plunged to over €16.4 million during the financial year, although sales increased by €1.4 million, surpassing the €50-million mark.
In the accompanying directors’ report, GameStop said that both the level of business and its financial position by the end of the most recent trading year “were considered satisfactory in light of the lifecycle stage of the current generation of computer consoles”.
It said a focus on cost-saving in areas such as rent and labour “assisted in achieving these results”.
However, the accounts show that its payroll bill was actually €89,900 higher than the year before at €4.4 million. During the 12-month period, GameStop employed an average monthly staff of 266 people, eight less than in 2016.
Elsewhere in the directors’ report, the company said that throughout 2017 and 2018, the company “will continue to review the performance of its stores”.
“We will open stores where we can identify a profitable opportunity and we will consider closing any stores that (are) not performing to expectations or where the cost-base, particularly occupancy costs, are out of line with the business levels in the location,” it said.
The directors also said that GameStop will continue to focus on growing its online business. The traditional console gaming category has faced increased competition in recent years from cheaper, downloadable alternatives.
To beef up its web trade, GameStop said it hopes to “expand our offering of complimentary digital gaming products, such as point of a sale activated game cards, digital downloadable content and other such innovations”.