View Full Version : GW expansion policy

22-08-2008, 15:47
I know there's alot of US\Canaian\Aust gamers on this board so this might not go down to well.

I was thinking\wondering would GW be better off to pull out of it's non-european markets except for direct (mail order) and maybe indipendant stores. GW has tried to "break" America with seemingly little success and most of it's loss making stores are in the US\Oz\Canada. Does the income generated by these GW stores in these countries outstrip the cost of maintaining\running them? I've seen their anual report and Europe\UK combined make alot of money, as does the us\canada, however the cost of setting up\running these stores must dramaticly increase the further away they get from the HQ.

Also the UK\Europe are very population dense meaning that one store can generate alot of sales\new customers (even if they don't stick with the hobby), whereas larger countries like the US are very spread out requiring more stores which generate less sales per store and after initial setup less new customers.

I have nothing against these countries and hope that GW will be successful in spreading all over the world, but at the moment this just doesn't seem viable, especially with rising fuel costs and other expenses.

So should they consilidate there home market and then when in a stronger position spread back out to the rest of the world?

22-08-2008, 15:58
Hm, I thought non-UK europe was doing bad while UK and non-european GWs did well?

Anyway, I doubt that backing away from those markets entirely would not really help. There´s a huge market overseas, but GW has to fight with independent and online stores everywhere.

22-08-2008, 16:11
If I'm not mistaken, the US stores are still making a profit - albeit a much smaller one than UK stores are making. And, at least in the more urban areas, the US isn't all THAT spread out. Sure, it's a little less dense than UK or most of Europe, but as a result we're probably used to travelling a little further to pursue our interests.

Templar Ben
22-08-2008, 17:48
There are a couple of reasons for the struggles.

The first is geography. Outside of large Californian cities and NYC, you do not see the population density in the US that you see in European cities. Here is a link for a list to get an idea. (http://www.citymayors.com/statistics/largest-cities-density-125.html) There are a number of people that post on here and say that there is not a GW store in their state. It is not uncommon for the closest GW store to be 1000 miles away.

That is just the nature of the United States. We are a society that is built on private autos so we have sprawling cities that is hard for people to imagine.

The second problem is an issue of culture. The United States and the United Kingdom are two people separated by a common language. You can look through here and you will see how people talk about US stores and how people talk about British stores. GW is a sponsor of GenCon in the UK but won't even show up in the US.

GW has to understand that in the US they are just another toy company. People don't know what GW means. I have met many gamers in Memphis don't even realize what GW is. That is because GW doesn't try to be approachable and instead want you to walk in the store where you can be greeted by sales staff with all of the acumen of multi level marketers.

They should definitely review their position in the US market. Instead of mall stores they should really try to push for Bunker type stores with events which will pull people in. They need to talk to people the way they talk. This is a company trying to get the teen and young adult male audience and their web presence is a sub par webstore.

By learning what people want (just asking people would go a long way) and how they communicate (hello they use computers over here (http://www.internetworldstats.com/stats.htm)) you can make sure they know about you and what you can do for them.

22-08-2008, 22:02
Well if you read the latest finance review GW Australia-New Zealand-Asia what ever are making profits are going up.

Down here as well we don't have the problem the US does and we have at least three stores in each state exept for Tasmania where we have the best stockist in the country in Hobart.

plus they are expanding in Japan opening 4 stores and New Zealand is going preety well to.