Need to know: Games Workshop’s 'one-man' format stores

Why are we talking about this now?

Games Workshop today revealed an increase in profit before tax to £21.4m for the 12 months to 2 June 2 2013, up from £19.5m last year. Peel Hunt head of research Charles Hall said the changing store model, which had seen the company close 40 stores and convert 86 into the new concept stores in the past year, had helped the retailer to become financially stronger. “The company is dramatically changing the store model with the move to the one man concept, which is significantly reducing costs and improving return on capital,” he said. Hall added that the process of rolling out the new model would be largely finished in the current year, which “should enable stronger sales growth from a lower cost base”.

When and why did Games Workshop implement the concept?

According to chief operating officer Kevin Rountree, the concept came about when chairman and now acting chief executive Tom Kirby visited the US, where many of the retailer’s stores were loss-making, open seven days a week and paying high rents. This led to Kirby piloting the “one-man” strategy in the US and Europe. “As long we were servicing customers, we found that one guy with less stock was financially more viable,” said Rountree. The pilot led to the retailer rolling the model out to further stores.

What does the one-person concept involve?

Previously Games Workshop operated larger stores that were usually open seven days a week and had two or three staff members working at any one time. Now stores tend to be about 60 sq ft, open five days a week and operated by one person. Rountree said the stores tend to attract “tens of customers” per day, with an average transaction of between £40-£50, and generally turn over £100,000 per annum.

Games Workshop’s strategy has been to close its larger stores and open smaller shops. It has now converted two thirds of its store portfolio to “one-man” stores. The manager of each store also receives a share of the store’s profits. Rountree said this gives “more of an incentive for that individual”.

How widely adopted is the model?

The one-person route has been taken by some independent retailers but otherwise the model is rare across the high street. Peel Hunt’s Hall highlighted shoe repairer Timpson as the closest small retailer. “Normally Timpson stores just have one person working in them, but they’re not just a one-man store; the staff work different shifts.”

Will other retailers follow suit?

Hall said he didn’t envisage other retailers rolling out the concept. “It could only apply to stores which are not open all the time, for example those not open in the mornings or on Mondays,” he said.