A Wall Street Journalstory says GameStop, which has over 6,100 stores the U.S., was able to best its rivals in selling video games in 2008 thanks to its practice of selling used video games. Barnes & Noble started the practice of selling used video games in 2000 and GameStop continued the practice when it was spunoff from Barnes & Noble in 2004.
GameStop this month reported a 22% jump in overall sales and a 10% increase in sales at stores open more than 12 months for the holiday sales period ended Jan. 3. It didn't hurt that videogame sales climbed 9% in December to a record $5.3 billion, according to market research firm NPD Group.
GameStop's sales gains are particularly buoyant compared with other retailers that sell videogames. Best Buy Co., the nation's largest consumer electronics chain, said earlier this month that its sales of entertainment goods, including videogames, movies and music, plunged 12% in December from a year ago. Best Buy's sales of videogame hardware and accessories fell by a "mid-single digits" percentage last month compared with the year before. Circuit City Stores Inc., another retailer of consoles and games, last week announced it would liquidate its 567 stores by April.
GameStop, however, "significantly increased sales of both new and used games," said Daniel DeMatteo, chief executive of the Grapevine, Texas-based retailer in an interview. Results for the final quarter are due in mid-March.
GameStop lets gamers trade in old games for in-store credit. They list games that they have some of the highest store credit offers here. This is the second success story related to the selling of used products we have heard of recently. The other is CeX which buys and sells electronics as well as video games. CeX plans to open more stores in the U.S. this year.
A Wall Street Journal 
