GAMES CENTRE
I developed 10 specialist Games shops in 100% prime locations. The locations were based on the principles set out in my MBA thesis on the Location of Retail Stores, whose first words were “Location, Location, Location.” I see President Donald Trump uses these words in his Art of the Deal, published 20 years later.
I developed a formula for self-financing the opening of new shops:
1) A number of top estate agents were commissioned to find 100% prime locations when they became available. I would identify the cities and preferred locations.
2) A rent-free period, generally 6 to 12 months, would be agreed. In return, I would agree to pay a higher rent. This would give the landlord comparable ammunition for negotiating leases on other properties.
3) I obtained good payment terms with suppliers. This would be a minimum of monthly (by the end of the month following the invoice) and was frequently agreed at 3 months or longer.
4) All shelving was modular, supplied by Soreplan, and we could minimise the need for complicated, expensive design work. The shelving supplier allowed 90 days’ credit.
5) Good deals were done on other incidental costs such as carpeting and shopfronts.
6) Because of the prime locations, I never spent anything on advertising. I opened the doors, and the customers fell in.
7) I used distinctive carrier bags with the words Games Centre clearly printed. This gave us a stream of walking ads especially in Oxford and Regent Streets.
8) Shops were opened in double-quick time. Adrian Labert-Williams managed and handled all activities connected with the opening. He also did any work required, such as shopfronts, removing unnecessary partitions,etc.
An essential ingredient was a sophisticated stock control system to ensure the correct numbers were ordered and the correct allocation to each shop was made. Daniel Lazar handled the buying.So, for example, a high proportion of wargames would be dispatched to the 22 Oxford Street shop and disproportionately more Monopoly sets went to the Bournemouth shop. The sales data were captured on the tills which were very advanced at the time. Our computer operated with large discs and used a program developed by Richard Szall based on the algorithm I drew up to optimise the stock control. Mothercare asked to study our system.
Another essential ingredient was maximising space in our rather small shops. Eddie Sizun was in charge of using our modular shelving to maximise the space.
Adjusting the stock levels in each shop was another essential ingredient in maximising sales. Martin Blackham was the merchandiser responsible for determining inter-branch transfers. Excess stock would be picked up by Dave on his delivery rounds and brought back to the warehouse, from where it was reallocated as and when the stock control system dictated.
David Morgan (“Moggy”) was the general marketing Manager responsible for all marketing functions such as advertising and promotions, special offers, etc.
Another essential policy was that all space should be utilised to display and sell goods. There were no stock rooms. All stock was displayed in the shops, often using the higher shelves for excess stock. A small staff room was allowed in each shop, but the size was kept to a minimum.
A distinctive logo was essential. The interlocking G&C was presented to me by an advertising person, who charged me a mere 5 Pounds. I used this logo for the entire life of Games Centre. And then subsequently for Gates Centre, Gambling.Com and GamblingCity.Com
Government regulations affected our trading policies.
I ignored any legislation regarding shopping hours. We paid our rent and rates, and I saw no reason not to maximise the time the shops were open. I corresponded with Margaret Thatcher, who agreed with my sentiments. The only day we closed was Christmas Day, because there was almost no business. We remained open on all other holidays. Every day, we stayed open as long as marginal revenue exceeded marginal cost. Managers were given discretion to decide when to close.
We paid significantly higher rates to the staff who worked outside the normal hours and days. We had three overlapping shifts each day. I didn’t object to any staff member joining a union, but I made it clear I didn’t recognise any union and that I would deal directly with the staff. A few were unionised, and one complained we were exploiting the staff by expecting them to work out of normal hours. Union representatives visited me demanding we stop exploiting the staff. So I called the staff into the meeting and asked their views. They all loved the system. They could earn more money and many preferred to work later.
The regulators decided that books should be zero-rated for VAT. So we classified as many products as possible as books.
Environmentalists and other do-gooders attacked us on numerous issues. We were told to stop selling the mercury puzzle because “it could make people mad”. I advised those complainants not to buy the puzzles.
There was a ridiculous game of the worst taste called Dad’s Army, in which arms and legs and ultimately the head were blasted away with bombs. There was a public outcry led by Willie Whitelaw and Prince Charles in view of a bomb recently detonated in Oxford Street
I stocked a trial order of 6 sets, and they sold out instantly. So I reordered 144, which also sold rapidly due to the adverse publicity. I placed further larger orders, which the suppliers struggled to fulfil. I was visited by a prominent journalist who told me that Hamleys had destroyed their stock, that Selridges had stopped buying, and that other shops had taken the games off the shelf. He asked me what I would be doing. I told him I was committed to meeting customer demands and would be grateful if the other shops he mentioned supplied me with their unwanted stock. The next day, a large newspaper article appeared about the actions of the other shops. But not a single mention of my response. Censorship existed even 45 years ago.
There were strange regulations relating to Sunday Trading. In Bournemouth, we were allowed to sell toys but not games. So we created a toy section by running a cord down the centre of the shop and placing as many items as possible there. If a customer wanted a game, we turned a blind eye to him/her crossing the line to get his/her product.
We only employed “Games Centre People.” These were generally young games enthusiasts who fit the profile outlined in a substantial introductory memorandum by the personnel manager, Marek Effendowicz. This led to a high level of team spirit and efficiency in dealing with the customers.
The accounts were handled by John Dawson, assisted by Wendy Ellison. John was a top-quality accountant. Unfortunately, he joined the Games Centre very shortly before we closed. Wendy was from New Zealand. Rene Levin was financial controller and handled the banking.
We employed 147 people over the years (73 in December 1983). Those I remember are:
Rene Levin. Finance & Banking
Craig Levin. My son. Computer Expert.
Wendy Ellison. Accounts Assistant
John Dawson. Accountant
Errol Gross. Earlier Accountant.
Mrs Murphy. My Secretary from start to finish
Marek Effendowicz. Personnel Manager & Trainer
Toffee Effendowicz. Shop Assistant
Daniel Lazar. Buyer
Martin Blackham. Merchandiser.
Nicky Day. My Assistant
Susanna (Sue) McKenna. Shop Manager 253 Regent Str
Guy Bowles. Shop Assistant.
Michael Harkin. Shop Assistant
Bob Malin. Shop Assistant.
Tom Jones. Shop Assistant.
Richard Szall. Computer Manager
Trevor. Warehouse Assistant.
Jerry Hoare. Marketing Assistant.
Amanda Walker. Shop Assistant.
Dave Thompson. Warehouse Manager
David Morgan. Marketing Manager.
Dave Dyer. Shop Assistant.
Doreen Johnston. Secretarial.
Eddie Sizun. Shop Maximisation
Michelle Constance. Shop Assistant.
Ben Wilkins. Shop Assistant
Evan Artro-Morris. Shop Assistant.
Tim Roberts. Mail Order Manager
Jervis Johnson. Shop Assistant.
David (Baz) Ryan. Shop Assistant.
Tom Jones. Shop Assistant. Wargames.
Martin Croft. Shop Assistant.
David Bishop. Shop Assistant.
Maggie Greenoak. Shop Assistant.
Joe Dever. Shop Manager. 22 Oxford Street.
Peter O’Toole. Shop Assistant.
Julian Barker. Shop Assistant. Wargames.
Andy Brazier. Shop Assistant.
Michael Hill. Shop Assistant.
Martyn Henderson. Shop Assistant.
Cary Gorwich. Shop Assistant.
Henrik Kiertzner. Shop Assistant
Robert Malin. Shop Manager
Rod Rivers. Shop Assistant. Print Manager.
Peter Darville-Evans. Shop Assistant.
David Wells. Shop Assistant. Puzzles Expert.
Dave Edmondson. Shop Assistant.
Alex Land. Shop Assistant.
Eamon Bloomfield. Shop Manager. Henley
Louise Victor. Shop Manager
Neil Pomroy. Shop Assistant
Roger Lebof. Shop Assistant.
Mark Gleeson. Shop Assoistant.
Polly Wilson. Shop Assistant. Graphic Designer.
Colin Fruman. Partner. Manager Charing Cross.
Brian Wides. Partner
Michael Beare. Partner
Barry Higgs. Shop Assistant
Philip Chung. Shop Assistant.
Jerry Larkin
Andy Finkelstein
Louise Tracy Assisted Marek
Patrick. Shop Assistant.
Neil. Shop Assistant
Caroline. Manager, Nottingham
Alan. Manager Brighton
Sarah Asst Manager, BrightonNoemi. Shop Assistant.
Justin Shop Assistant
I remember keeping some cash in the safe in my office. After a heavy rain, the safe became waterlogged. Rene and I called this “liquid cash”.
As a Christmas Bonus, I gave generous games vouchers to the staff, all of whom were games enthusiasts. Marek sent me a lovely thank-you note.
My son, Craig, served in the 22 Oxford Street shop in the Computer Department. He was an expert on all the computers of the time, such as the Atari, Commodore, and the BBC. He was about 9 years old.
Michelle once came to work in the 22 Oxford Street shop with Blue Hair. I told her never to do that again because of the possible negative effect on our image. She agreed and appeared the next day with pink hair.
Colin looked after the Charing Cross Road Shop. He was over-geneous in helping beggars and gamblers.
We imported many thousands of Rubik’s cubes from Taiwan for a few pence each and sold enormous quantities for GBP2. Ideal Toys had the rights to the product and objected to us selling unofficial versions. We came to a deal that we could sell our existing stock and not reorder.
THE SHOPS
1975. 16 Hanway Street. The original shop.
We had started to sell games by mail through Games & Puzzles.(handled by Tim Roberts) I decided to provide retail facilities and found the premises around the corner from the Games & Puzzles office in Tottenham Court Road. The shop was advertised in Games & Puzzles. The range was limited to the best games.
The basement was used as the warehouse.
At that time, Michael Ashcroft (later Sir Michael) of Hawley Leisure was interested in buying the business. Unfortunately, he saw a game that was untidily stocked in the downstairs storeroom and pulled out of the deal, saying it could indicate general sloppiness.
1977. Kingston on Thames. 2 Castle Street.
Sold 1978 to Michal Beare
Eamon Blomfield managed the shop
Then I decided we needed to expand. I entered into a partnership with Michael Beare of Beare’s in South Africa. It was a simple deal. He would inject GBP50,000 for a 50% stake. I drew up a simple one-page agreement. He presented this to his lawyers, who prepared a 40-page agreement and a revised Memorandum and Articles of Association. We never referred to the agreement. When we decided to part ways, we struck a simple deal. The business was to be split. He would take the Henley shop, and I would retain the Oxford Street shop.
1979. 22 Oxford Street
GF 800 sqft, 1st 550 sqft. + Basement & 3 Floors of offices. GBP33pa
The Hanway Street retail and warehouse operations were switched to 22 Oxford Street. I rented the entire 4-storey building from the Prudential Insurance Company. We sold board games and jigsaw puzzles on the ground floor and wargames and computers on the first floor.
The property is in an intercepting position before Tottenham Court Road, which in those days was the main electronics area. Next to Virgin Records Superama, nr Herbert Woolf & McDonalds. Opp Claude Gill Books.
I then entered into a three-way partnership with Brian Wides and Colin Fruman. This worked well, and we opened a couple more shops. Brian took care of the accounting, and Colin looked after the Charing Cross shop. Colin and I then bought out Brian’s share. And soon afterwards, I bought out Colin’s share, becoming the owner of 100% of the shares.
1978. 126 Charing Cross Road
Opposite Foyle’s Bookshop, this was a good position to focus on Games Books. We also stocked a range of children’s books. The basement was used for staff training and an occasional party.
Closed 1983
1980. 439 Oxford Street
1,350 Sqft. GBP85k pa.
Opposite Selfridges. When they closed for the day, their customers streamed out, many into the Games Centre.
1981. 184 Regent Street
630sqft. GPB55pa. Intercepting Position for Hamleys. Games Centre was tiny compared to Hamleys. We captured good business on the way to Hamleys. Next to Bootes.
1981. 254 Regent Street
800+920 sq ft. GBP72.5pa. Intercepting position for Hamleys giving us a shop on either side of Hamleys. I decided to stock toys as well in order to capitalise on the Hamleys trade. I renamed this shop “Toys & Games”. We traded on 2 levels.
1982. 52/3 Western Road, Brighton
Our first venture out of London. Two ex-Games Centre employees, Dave Dyer and Polly had set up a small games business in Brighton. They were naturally upset by our move, but Brighton was high on our list of priorities and a prime location became available.
Opp Top Shop & Woolworths. Next to Benneton.
1605+1080 (Basement)sqft. GBP60pa.
1981. Opened Warehouse at 47 Kentish Town Road. NW1
1982. 141 New Street, Birmingham
This was our largest shop, spread over three floors, in the best position to intercept pedestrians on their way to the nearby New Street Station in the city centre.
The manager stole money from us over a period and then disappeared.
During 1983, the lease was disposed of.
1982. 31 Listergate, Nottingham
Our northernmost shop in a good shopping centre.
Next to Hudsons Books. Nr Thomas Cookes, Dunn & Co, Woolwoths and Boots.
1240 sq ft. GBP30pa.
1983. 60 Commercial Road, Bournemouth
One of the best locations in Bournemouth.
Nr British Home Stores, Marks & Spencer, Mothercare. Dixons
1680sqft. GBP42.5pa.
1983 15 Broadmead, Bristol
This was the last shop we opened. Two adjacent properties were available. We leased both and amalgamated them into one great shop.
Next to Halfords.
1920 sqft. GBP66pa.
Our warehouse was about a mile north of Tottenham Court Road in Kentish Town, well located to service all 10 shops. Close to Camden Town Underground.
5700sqft. GBP10.5pa.
Dave Thompson, the warehouse manager, handled all incoming deliveries. He packed the goods for the shops and delivered them in a round trip in our van. He had a strange notion that he should start the van in second gear, which, over time, destroyed the motor.
Oxford
I had looked for years for a good location and had identified the only 3 locations of interest. Right at the very end of Games Centre an agent was able to secure a lease on one of them, but I couldn’t take advantage of this.
Games Centre made a profit of 82,000 for the year ended 31st May, 1981 (Gross Margin 40%), and of GBP172,000 for the year ended 31st May 1982 (Gross Margin 44%) and a loss of GBP14k for the year ended 31st May 1983 (Gross Margin 39%). It made a loss for the remainder of 1983 (Gross Margin 42%). Turnover for !982 was about GBP3,500,000.
We has about 20,000 stock control units.
The main categies were:
Family Games. These generally had a high gross margin of around 50%. Every game was stocked.
Abstract Games
Puzzles
Wargames/Science Fiction/Role-Playing.
Childrens’ Games
Electronic Games/Computers. High priced, low margin.
Books
Toys
Classic Games. Mostly imported from Taiwan. Astronomical margins.
Jigsaws
Cards & Card Games
Accessories.
We expanded rather too rapidly and became increasingly illiquid. The illiquidity was aggravated by a significant increase in demand for high-priced, low-margin electronic products. A new computer system took a while to bed down, resulting in unbalanced stock. The Harrods bomb caused the Main London shops to be cordoned off or access severely limited. We struggled to pay our suppliers on time. Despite the company being profitable, our lawyer advised that we would be acting fraudulently if we purchased knowing the payment terms would be breached. Foolishly, I became upset by this and agreed to go into voluntary liquidation.
We had some other options, which I didn’t pursue. We could have sold some of the shops. Indeed, the shop at 22 Oxford Street was sold to Richard Branson. He acquired a property on Tottenham Court Road and linked the two, creating a large electronic games outlet with shopfronts on both Oxford Street and Tottenham Court Road. We concluded the deal on his boat at Henley-on-Thames.
I subsequently learned that our largest supplier, Palitoy, would have given us extended credit to ease the financial burden.
I didn’t pursue the possibility of bringing in a financier.
I strongly resisted going into receivership and allowing one of the finance companies to manage our affairs.
The prime leases were very valuable. We sold the New Street, Birmingham lease in 1983.
We closed the Charing Cross Road shop in 1983 because it was loss-making.
I have some regrets. Closing Games Centre was one.