GameStop is the latest retailer to announce that it will be closing stores this year. USA Today reports the video game retailer had a drop in fourth-quarter sales and announced plans to close at least 150 of its 7,500 stores worldwide. GameStop reported a 13.6 drop in global sales year-over-year. The company cites its recent downturn to increased competition in the gaming space from retailers such as Best Buy, Amazon.com and Wal-Mart, which have focused on selling games digitally.
Total Retail's Take: The gaming space has seen some of the most disruption in retail over the last few years due in part to the growth of e-commerce. Most consumers are purchasing games digitally — whether it's through an app, e-commerce site or a video game console. This change has forced GameStop and retailers alike to rethink how to connect with their customer bases.