Today, here's one of the biggest questions I've had in mind and that is why Kmart owned by Coles has stopped selling Video Games and that's when I discovered four years ago in 2015 where there's now accessories for iPhones and Headsets and Speakers on the shelves. Any reasons of how this happened?
Not enough margin. Not enough sales A lot more people going digital and not buying physical copies. No trade in ability like EB and JB. People who buy games may like to go to places that specialise in their hobby with a wider variety of choice.
I can see Target and Big W going the same way with games soon as well when I go in and see their offerings.
Agreed. The electronic entertainment space is getting smaller and smaller, and I don't blame them given it's hard to sell relative to what most people go into those stores to buy.
Kmart is not owned by Coles any more.
It never was.
Kmart was part of the Coles Group when Wesfarmers purchased it.
Wiki says:
Kmart Australia Limited was born out of a joint venture between G.J Coles & Coy (Coles) and Kmart Corporation in the US. The first store opened in the Melbourne suburb of Burwood in 1969.[6]
In 1978 Coles acquired full ownership of the Australian K-Mart operation and in 1994 bought back all shares Kmart Corporation held in Coles Myer.
The good ol' Coles Myer shareholders discount card!
Margins are too small, so space was opened up for more profitable categories.
So simple,just ring up Kmart and find out why ?
I think it also has to do with the identity Kmart has created for itself. They have built a reputation over the past decade for selling (subjectively) decent goods at stupid cheap prices. They've achieved this largely by using the Aldi method; ditching much of the name brand stuff and selling their own lines of products. They can't do the same thing with digital media, so it no longer fit into their strategy. Combined with low profitability, I think it would've been a no brainer for them to ditch it.
I'd imagine it also was to try and tier the whole KMart vs Target product mixes so they don't end up cannibalising each other's sales/market.
I still remember in the old days when I bought an N64 from KMart for $199 with a game.
I got my PS1 from Kmart for $195 and it came with a demo disk.
I thought people only went to Kmart to buy games and dvd and the likes when they were on 'clearance' or selling next to nothing. They sold lots of good games for my young children that most people wouldn't want back in the day at bargain low prices!
Does that mean Kmart no longer sells consoles?
Nice find!
Ingredients: Alcohol, Butane, Isobutane, Propane, Water, Fragrance, T-Butyl Alcohol
Wow. Here I was thinking the things that made that stuff so flammable was the alcohol burning clean. I was very wrong.
becoz they kept giving out a 3rd one for free and now in debt
https://www.kotaku.com.au/2015/04/video-games-continue-to-be…
https://www.kotaku.com.au/2014/12/why-kmart-target-and-big-w…
https://www.ozbargain.com.au/node/380585
I'm guessing profit margins is a reason. DVD's, games, digital media are fairly low margins and you can't really offer a bargain price when you have retail overheads.
Westfarmers quarterly report says:
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.