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UK independent retailers say the cost of stock this Christmas is seriously harming their ability to compete.
Trade pricing has long been an issue for smaller outlets, but one indie says that the situation is ‘worse than ever’.
It follows the recent launches of Call of Duty: Black Ops III, Fallout 4 and Star Wars Battlefront.
Fallout 4’s trade price, according to multiple sources, was 42 – whereas supermarket rivals like Tesco and Sainsbury’s had the game on shelves for 40.
This year it is worse than before, because everyone is trying to have a 40 price point for the games – which is much lower than the 55 RRP,” stated one indie retailer. It’s just not happening.”
It’s the same with hardware, too. Another store manager said: We tend not to buy consoles direct from any major distributor, because it pays us to go to GAME, buy one of their bundles, sell an Xbox One for 300, take the games out and make an additional 90 by selling them separately.
That’s our profit margin. If we were to buy a console direct, we’re only making 25 if we’re lucky.”
However, some indie retailers have seen flexibility from some of the major suppliers: For Call of Duty, there was a lot of cheaper grey stock being offered, and Activision brought its price down to make it more competitive,” said one outlet.
