Here's the scoop on EB Plc
I know sony dropped price on in response to Dreamcast, however that didn't seem to adversly effect ELBO, not sure what's going on in England/Europe. I think there is more to their (
European) situation then meets the eye
Mad2
Copyright 1999 AFP-Extel News Limited
Extel Examiner
November 24, 1999 Wednesday 02:26 AM Eastern Time
SECTION: COMPANY NEWS
LENGTH: 263 words
HEADLINE: Electronics Boutique margins hit by PlayStation price pressure
DATELINE: LONDON
BODY:
Electronics Boutique PLC said exceptional price pressure on the now mature PlayStation platform will make it difficult for the company this year to achieve a gross margin percentage similar to that achieved last year.
However, it said the overall market for its product range continues to grow very strongly, with unit volumes currently up approximately 25 pct on last year.
At this stage there has not been an increase in like-for-like sales volumes to counter-balance the margin pressure. The company is currently experiencing a reduction in gross margin of six percentage points and, whilst improving, gross margin is unlikely to be materially restored during the crucial Christmas period, it said.
The company said: "By offering best all round value we expect to emerge from this difficult trading period with an even greater share in and influence over the future of our industry. Whilst this strategy is likely to adversely affect short-term results, current generation PlayStation software will represent a much reduced share of EB's total revenue next year."
The newly acquired GAME stores are now trading in line with the EB branded stores.
The company also said that, following successful trials of racking its product range at eight Sainsbury and Savacentre stores, it is to extend this programme to a further 25 Sainsbury group outlets over the next 14 days.
The new EB and GAME internet sites, including on-line retail, will be launched on Dec 1.
ln/
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
LANGUAGE: ENGLISH
LOAD-DATE: November 24, 1999
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