Game Group finds new chief as it fights sales drop

Game Group today moved quickly to replace its chief executive but also confirmed the games market, particularly in the UK, is struggling.

Lisa Morgan quit as chief executive of Europe's biggest video games retailer in April after profits dived.

Today her replacement was revealed as Ian Shepherd, 41, the UK consumer director of Vodafone. He also worked for Sky for nine years as customer marketing director.

Chairman Peter Lewis said: "Ian is a young dynamic chief executive with very strong consumer expertise and good knowledge of the pc and video games market.

"The strength of our business lies with our brands, customer relationship management and supplier partnerships. He has a proven track record in each of these areas."

Game saw same-store sales drop 12.3% in the 19 weeks to 12 June with UK sales down 17.2%.

The market was primed for bad figures following Argos's trading statement last week.

The firm said despite new releases from video games producers just announced at the US trade show it still expects sales to decline throughout 2010.

Seymour Pierce analyst Freddie George, who has long been a fan of the stock, today admitted he had got it wrong and slashed his profit forecasts. He said: "We are becoming more concerned about structural changes evolving."