Game Group's sales dip worsens

July 02, 2009 Video games retailer Game Group on Thursday reported an accelerating decline in sales, only partly offset by better profit margins, sending its shares as much as 11% lower. Before Thursday's update the stock had lost 43% of its value over the last year on fears of slower growth, lack of newsflow on the next generation of consoles and the threat of digital distribution, underperforming the FTSE All Share General Retailers index FTASX5370 by 49%. "Against our full year assumptions the performance in H2 is now looking quite stretched, and assumes a significant pick-up in like-for-like trends and sales transfer from failed competition (Woolworths and Zavvi)," analysts at Singer Capital Markets said in a research note.

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