// Argos and Game’s physical entertainment sales due to blockbuster gaming releases
// Entertainment market shares for the two retailers grew faster than Amazon
// Red Dead Redemption 2 accounts for 21% of sales online and in store
The growth in physical entertainment market shares for Game and Argos has eclipsed the rate of growth for online retail giant Amazon, according to new research.
Argos and Game’s sales increase is a result of its blockbuster video game titles being released during the 12 weeks to January 13.
The latest figures from Kantar Worldpanel indicates that many of the sales were transferred from supermarkets, and accounted for 49.7 per cent of gaming sales compared with 61.5 per cent in the same period last year.
While Amazon’s market share of physical entertainment sales grew from 24.6 per cent to 25.2 per cent year-on-year, Argos and Game grew at a faster rate – from 8.2 per cent to 10.2 per cent and 6.6 to 8.1 per cent respectively.
The biggest losers in market was Tesco, which declined 10.7 per cent to 7.5 per cent.
Meanwhile HMV, which fell into administration during the period covered by Kantar Worldpanel, saw its market share fall 15.6 per cent to 14.2 per cent.
“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,” Kantar Worldpanel consumer specialist Giulia Barresi said.
“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.”
The video game Red Dead Redemption 2 was one of the latest releases and accounted for 21 per cent of sales online and in-store.
“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,” Barresi said.
“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.”
“The festive period is always a crucial time for video game sales, and this year saw big uplift in the number of women finding games in their stockings.
“Almost 16 per cent of all gaming gifts were given to women, up from 12.5 per cent last year, with the most popular titles being Spyro Reignited Trilogy and Just Dance 2018.
“This trend provided a further boost for the specialist game retailers and should provide a lesson for the rest of the high street that despite reducing the shelf space they dedicate to games, they need to think beyond the blockbusters to engage with different demographics.”
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