Major retail company, operating across 240 locations, is set to shutter five of its branches imminently. Check if your nearby outlet is among those affected.
In the UK, a popular video game and electronics retailer, Game, is set to close several branches in August and September. The Chatham store is scheduled to close in September, while the Basingstoke store will close on August 10, and the Southend store later in August. The Gateshead store in the Metrocentre Shopping Centre will close on September 7, and the Bristol store in the Galleries Shopping Centre will close on September 25.
These closures are part of a broader trend in the retail sector, with big names like Poundland, Hobbycraft, and The Original Factory Shop also confirming mass closures in 2025. The closures are driven by multiple factors including mounting cost pressures, shifting consumer behavior, and overextended store networks on the high street.
Retail analysts attribute Game's latest round of shutdowns to the high street's long-term decline, exacerbated by economic conditions such as inflation and reduced discretionary spending. The Centre for Retail Research states that the retail sector has been in a 'permacrisis' since the 2008 financial crash. This year's hike in employer National Insurance contributions (NICs) from 13.8 percent to 15 percent, along with a lower threshold for payments and a rise in the national minimum wage to £12.21 per hour, has affected many retailers.
The impact of these closures is significant. Economically, local communities will face the loss of retail jobs, and reduced foot traffic on high streets can affect other retailers and the vibrancy of town centers. The shift in consumer access pushes more customers to ecommerce platforms, affecting the traditional retail ecosystem.
Looking ahead, the future of high street retail, including game stores, is likely to involve greater integration of online and physical shopping experiences, smaller, more experience-focused physical stores, potential growth in discount retail segments, and adaptations to consumer demand for convenience and value.
The Frasers Group, owned by retail tycoon Mike Ashley, bought out Game in 2019 in a £52 million deal. The Daily Mail has contacted the Frasers Group for comment on the recent closures, but as of now, no official statement has been released.
So far in 2024, 34 retail chains with multiple stores have gone bust, resulting in the closure of 7,537 stores. A combination of surging energy bills, rent, wage hikes, and shifting consumer habits - including a major move toward online shopping - has put high street shops under intense pressure. Clearance events with discounts of up to a fifth are being launched in the Bristol and Gateshead stores.
[1] Source: Centre for Retail Research, Retail Gazette, The Guardian
[1] The insurance industry is closely monitoring the ongoing closures in the retail sector, as business losses in retail could have a ripple effect on finance.
[2] Amid the general-news of Game's store closures, it's also worth noting that the retail industry is facing challenging conditions, such as economic instability, inflation, and reduced discretionary spending.
[3] With more retail businesses potentially going bust in the future due to mounting cost pressures and changing consumer behavior, the finance sector may see an increase in insurance claims from affected businesses within the retail industry.
