Late last year Kmart removed all copies of Grand Theft Auto V from stores in response to a petition. Back then we pointed out how easy that decision would have been. The truth: video games are a declining market for big retailers like Kmart and have been for some time. The latest quarterly report from Wesfarmers, who own Kmart, re-confirms this.
Kmart had a fairly decent year. Growth in some areas, decline in others. The growth areas? Home and seasonal apparel. Areas in decline? Entertainment. More specifically? Video games and DVDs.
It was significant enough for Wesfarmers to call it out specifically in its quarterly report released today:
Kmart Managing Director Guy Russo said the strong sales growth for the quarter was driven by core ranges in home, seasonal apparel and Easter related ranges. This growth was partially offset by the continued decline within Entertainment categories including video games and DVDs.
This, almost word for word, replicates a statement released in Wesfarmers Quarterly report in late 2014:
Strong sales growth performance was achieved across the apparel and home categories, partially offset by declines in video games and DVDs in the entertainment category.
Again, Wesfarmers was referring to Kmart and the games situation.
You can read our look at the situation with big retailers and video games here. The reality is that video games are becoming a more difficult sell for the Kmarts of the world.