GameStop Will Close Up to 200 Stores by End-of-Year
GameStop is planning to close between 180 and 200 underperforming stores by the end of its fiscal year, according to CNBC. The video game retailer made the announcement earlier this week after it posted disappointing fiscal second quarter earnings.
“Optimizing our store base for an increasingly digital world is essential for the future and increasing the profit productivity,” GameStop CEO George Sherman said on an earnings call with analysts Tuesday, CNBC reported. Sherman said the company has the “opportunity to do even better and expand profitability” by reducing the number of stores in certain markets. Currently, GameStop operates more than 5,700 stores across 14 countries, CNBC reported.
Total Retail's Take: Consumers are continuously choosing digital options for gaming on their computers or digital devices, instead of buying physical games. In addition to that trend, consumers are increasingly purchasing games online, rather than going to a brick-and-mortar store like GameStop. By closing underperforming stores, Sherman and GameStop's management team are putting in place a plan to optimize the stores that are performing well, while also shifting resources to better compete in the digital space. According to CNBC, GameStop launched a new website platform and now has an option for customers to buy games online and pick them up in-store.