Video Game Stores - Start Your Own With a Franchise

Gone are the days when video games were just for children, with people of all ages and genders enjoying the fun, thrilling and educational nature of video games. As a result, video game stores have the potential to become profitable businesses worldwide.

Video Game Stores UK

Figures suggest the games industry has created over 47,000 jobs and, in 2018, contributed nearly £3 billion to the British economy. Ukie’s Games Map demonstrates that there were 2,261 active games companies in the UK, operating across a wide range of games technologies, including PC, mobile, console and VR.

In 2017, the UK was the fifth largest contender in the video game market, in regard to consumer revenues, after the US, Japan, China and Germany. It was also estimated that, in the same year, 32.4 million people in the UK played video games and the amount that consumers spent on them was recorded at £5.11 billion, an increase of 12.4 percent from 2016. This rise in consumption indicates that the video game industry shows no sign of slowing down any time soon, and with the constant development of new games, technologies and consoles globally, starting your own video game franchise is without a doubt set to be a stable and profitable business venture.

Online Video Game Stores

Many of the UK’s leading games stores are online as well as operating through the classic shop-front location, such as, GAME, Go2Games and Console Passion Retro Games Store. The benefits of buying video games online include convenience, easy price comparisons and the large variety of products.

However, this isn’t to say that opening a shop-front style franchise would be less successful. On top of the negative environmental impact of packaging associated with online shopping and the detrimental effects of spending too much time online, buying the video game in person is a friendlier, more personalised shopping experience.

Digital vs Physical Games

As well as there being the option to purchase physical games in-store or online, digital games can also be bought online. Buying digital games online is incredibly convenient, as you can never lose them like physical games and they can sometimes be played on multiple platforms, such as PC and Xbox One.

On the other hand, purchasing a physical game gives you the option to sell or return it, or lend it to a friend and you don’t have to consider the internet speed. Also, if you’re a bit of a game geek, you can show off your collection to your friends.

Types of Video Game Store Franchises

There are a few options to think about before jumping straight in. Some video game stores focus on retailing the latest consoles and games, on top of taking in used games and equipment that are in a reasonable condition.

Or, alternatively, your video game store franchise could offer restoration services for gaming equipment, and even extend to selling pop-culture and game-based collectable items.

Video Game Store Franchises

Starting a video game store franchise is simpler than it sounds. Implement the business model of an existing franchise and you can make the most of their already-established brand identity, leads and contacts. Well-known names in the gaming sector, such as Experimax and CeX, are on the hunt for franchisees as we speak. You can rely on them for their expertise and can be reassured that every business decision you make is well-informed and most importantly, what’s best for the success of the franchise and its clients.

The best-selling video game franchises worldwide have sold at least five million copies each – a staggering amount. Including Mario, with 588 million sales, Pokémon, with 311 million sales and Grand Theft Auto, with 280 million sales.

If you’re a budding entrepreneur set to press play on your new business venture in the video game industry, see below for video games store franchise opportunities in the UK with Point Franchise.

Video Game Store Franchise Opportunities in the UK

CeX

Complete Entertainment eXchange is a video game store franchise dedicated to used entertainment technology. It accommodates those who enjoy buying and selling second hand technology, such as mobile phones, video games and DVDs, and who also may need to repair something.

CeX was founded in 1992 by Robert Dudani, Paul Farrignton, Hugh Man, Oli Smith and Oliver Ball. They acknowledged that there was an area that hadn’t really been explored in the technology market - used computers, phones and gadgets. Therefore, they created a video game store that sells used, yet high-quality devices. This led to the opening of their first franchise in 2006.

The chain is part of the British Franchising Association and has also received accreditation from most national banks. Despite their products being old, their business model is always fresh, and explains why they are making their mark in the video game market in the UK. Their success was demonstrated after they won an award in the BFA Franchise Marketing Awards in 2016.

When they’re not winning franchising awards, CeX is working on its business strategy, so it can continue to infiltrate international markets. So far, CeX has seen success in Italy, Poland, Portugal, Spain, Mexico, Australia, India and Ireland.

Also, choosing to invest in the CeX franchise is a smart business move because the market they are part of has very little competition.

Training and Support

CeX offers to support its franchisees in every possible way. Its devoted team of experts will support and advise franchisees on the intranet system, business services, pricing of stock and store design.

The Ideal Franchisee

CeX is actively searching for potential franchisees, as its business is expanding and it must keep up with the greater demand. With more technological developments happening each year, and gadgets being upgraded and released, there is a larger demand for products which are cheaper, boosting the second hand market.

Retail management experience is desirable, and a minimum investment ranging from £150,000 to £250,000 with £40,000 in liquid capital is required.

Becky Martin, Point Franchise ©