EB Games Closures Worldwide: Impact on Australia Explained
EB Games has announced the closure of its New Zealand operations, raising concerns about its future in Australia. The company will shut down all stores in New Zealand on January 31, with the distribution center closing permanently on February 28, 2026.
Impact of EB Games Closures on Australia
The decision to close the New Zealand stores comes amid increasing pressure on retail businesses globally. EB Games Australia & New Zealand managing director Shane Stockwell noted that despite receiving numerous offers, no viable proposals were made to sustain operations in New Zealand.
Company History and Ownership
- EB Games Australia, originally known as Electronics Boutique, launched in 1997.
- The first New Zealand store opened in Auckland in 2000.
- Electronics Boutique rebranded to EB Games globally in 2002.
- U.S. retailer GameStop acquired EB Games for $1.44 billion in 2005.
Current Operations
According to GameStop’s latest annual report, EB Games currently operates 38 stores in New Zealand and 336 in Australia. The company’s recent history has been marked by challenges, including the closure of 20 outlets in Australia in 2020. The retail market has struggled with competition from online giants such as Amazon and JB Hi-Fi.
Financial Performance
Shane Stockwell described the New Zealand business as no longer commercially viable, citing a multimillion-dollar loss during the 2024 fiscal year. He expressed disappointment over the company’s inability to improve its performance despite significant efforts to revitalize the business.
- The company anticipates possible opportunities for New Zealand employees to transition to Australian stores.
- Future prospects for Australian operations remain uncertain.
As the retail landscape evolves, EB Games faces a critical juncture. These closures highlight the struggles of traditional stores against the backdrop of changing consumer preferences and the rise of online shopping.
