By Gavin Ogden
Stock in GameStop fell 7.7 per cent to $22.01 in New York Stock Exchange composite trading, Bloomberg reports.
The drop is being attributed to the fact that Wal-Mart has slashed prices on the top 25 titles by as much as 20 per cent through to December 24.
Tony Wible, analyst with Janney Montgomery Scott, believes GameStop may need to match those reductions to stay competitive. “Many of the GME stores overlap in close proximity to a WMT store as GME has historically sought to benefit from WMT foot traffic,” Wible said.
Back in January it was reported that Wal-Mart stole market share from GameStop, with Janco Partners analyst Mike Hickey noting, “We expect GameStop may have lost intended foot traffic this holiday to big-box retailers offering highly promotional pricing on numerous consumer products. We think low price retailers like Wal-Mart, arguably the largest domestic videogame retailer, likely took market share this holiday."
