David Jones Is Getting Out Of The 'Low Performing' Games Business

I'd be very surprised if anyone reading Kotaku Australia bought their video games from David Jones, but we've just received word that the retail giant has decided to stop selling games in their stores.

"Our focus is on improving the profitability of our sales," said Managing Director Paul Zahra. "We are exiting the low performing categories of DVDs, Music and Games."

According to Zahra, electronics as a whole was "challenging" and "subject to ongoing deflationary pressure".

This news comes in the wake of news that retail earnings on video games have contracted by 23% in 2012. It is the belief of many that new consoles will kickstart the domestic video game retail market, but David Jones clearly didn't want to wait.


Comments

    David Jones sold video games? I did not know this until now.

      They where so over priced, they made EB look a bargin.

      If you don't price yourself in the market your not going to sell. I can not sell a game you can buy everywhere else for $50 if I'm charging $120. Unlike fashion, people don't pay more for a game because buying it cheaper does not reduce the quality. Same goes for their whole same as everyone else has but for more money Music and DVD's.

      You probably don't go into DJs all that often... not many people do.

    So you're telling me if I want to buy a matching video game to go with my handbag I'll now have to visit two different stores? Well that's inconvenient.

    Will be interesting to see if there's any sort of stock liquidation sale.

      My local David Jones has been liquidating all their games, DVDs, Blu-Rays and CDs since just after Christmas. I guess it all makes sense now...

    Damn! where am i supposed to find a copy of John Woo's Stranglehold for the low low price of $80 now?

      Hehe...exactly!

      I would walk into the 'games' section in DJs just to get a laugh.

    I think I bought Guitar Hero on DS from there when they were selling it really cheap, but they have never been my goto store for anything

    Wow, didn't even know they were selling games. Thinking of the DJ stores I've been to... Nope,can't remember seeing them around.

    Well, it's not always gamers that buy games. Parents may be more likely to buy from David Jones than they are from EB Games.

    They have like... five stores in Victoria that are nowhere near me which is why I never buy games there but than again I almost never buy from Toys R Us, Harvey Norman, Big W, Kmart, Target, Dick Smith, Good Guys and any other wholesaler.

    EB Games and JB Hifi seem to be the only places I buy locally from.

    Any good sales happening with them then? Myers got rid of all their CDs, DVDs and BluRays dirt cheap ($5) just a few weeks back. Could be a repeat of that?

      There's an article on Gizmodo with more details. Apparently, rather than having a 'fire sale' they've decided to go with 'modest price cuts' until July, when they'll just stop selling them.

      My guess: expect an abundance of stock to go on clearance on 28 June.

        Would be funny if "more modest pricing" demonstrated how it should be done. Someone will have egg on their face if in the next 4 months that department becomes more profitable than ever before.

        They've actually been having a modest clearance sale since the start of December last year. But their modest sale is coming from stupid high prices to just high prices that no one will pay anyway. My local still had Fifa 11 for $99.95! Not sure why!

        The biggest problem at DJ's was that they didn't follow the price mark down system that Games get. They'd simply price the stock and then forget that it existed out on the floor until it came time to do a stocktake.

        Another item I was wanting to scoop up was brand new NDSi's, I was hoping to get them cheap. They were still priced at $289, this is more than the rrp of the 3DSxl!

        DJ's need to take massive price drops just to get people interested in picking up the old shit games that they've got left.

    Didn't they get out of the biz already or was that Myer

    Can't wait to swing by DJ's and pick up a copy of Ping Pals.

    I even found one last year that was selling GBA games.

    Heh, i only ever bought one game at David Jones for $40, and it was probably the most luckiest fluke my mate ever stumbled upon (he brought it for me and i payed him back etc). That game was the Metroid Prime Trilogy. New aswell.

    I should add that the same store was selling Games Of Thrones S1 for $195. I shit you not. DJ logic ladies and gents. A fairly hard to find trilogy for (considering how much other sellers ask for) a decent price, and a single DVD series priced exactly the same as buying 3 of them everywhere else.

      single as in season, not single as in how many discs were in the case, just to clarify.

        yeah saw that too. The lady asked me if I was interested and I said I'd got it for $40 at the JB just down the corridor.

        She didn't believe me.

          Unless they must be a super special edition DVD that were personally crotch-rubbed by Sean Bean himself, its very silly how high their prices are. On DVDs that is. Their games on the other hand, is a steal :P

    When you sell games from the last generation at full price how do you expect to sell anything. David Jones never understood their product and that's why they made so little sales.

    I scored 2*Gba e-card readers and several packs of nintendo cards for about $15 about 2 years ago. Thanks David Jones!

    why do people even buy new games in Australia when you can get them so much cheaper online and it's literally the exact same product?

    I used to work there... The only people who brought games were the occasional parent, sometimes with young kids, and people who'd been given gift cards.
    Games were NEVER on sale (except for really old ones) and always were at RRP. Sold even fewer PC games than console ones (but then we barely stocked any PC ones). Even staff only got a 5% discount (for electronics - apparently up to 10% now), so it still made sense to shop elsewhere (although David Jones *do* price match if the store is local!)

    The music and DVDs used to perform quite a lot better (tho still poorly when you think of competitors I guess).

    To be honest, the whole "electronics" thing inside DJ's never made sense.. they used the same economic models that work for clothes and stuff... For example: no haggling, whatsoever, ever. This made selling TV's pretty hard (since most of our competitors business modelled involved haggling).

      Which just screams to me "Hello, I don't know how to run my company/business".
      There has to be someone making the decisions...

    I'm pretty sure the Adelaide city store stopped selling games some time ago just like Myer.In fact in Rundle Mall the only place to buy games is JB and 2 EB's, even the brand new Big-W doesn't have a game section, and Toys-r-us,GAME and Dick Smith recently closed.

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