GameStop is closing up to 200 stores worldwide

[midian182]

In brief: GameStop has used its Q2 earnings call to reveal the closure of 180 to 200 of its “under-performing” stores globally. The outlets will be shuttered between now and the end of the fiscal year.

GameStop’s CFO, James Bell, claimed that 95 percent of the company’s 5,700 stores were profitable, but said that “we have a clear opportunity to improve our overall profitability by de-densifying our chain.” He added that more outlets would be closed down following this year’s shutterings.

"We are applying a more definitive, analytic approach, including profit levels and sales transferability, that we expect will yield a much larger tranche of closures over the coming 12 to 24 months,” said Bell.

The closures are part of GameStop’s Reboot initiative, which consists of addressing selling, general and administrative expenses, as well as optimizing the current business and developing new revenue streams.

The Reboot plan saw the chain lay off 170 workers last month, including several members of staff from its Game Informer subsidiary magazine. GameStop has also shut down geek culture retailer ThinkGeek’s online store, consolidating it with its parent company.

GameStop, which saw record losses last year, posted a net loss of $415 million for the last quarter and expects sales to be down over the next three to four quarters as the current console generation comes to an end. It added that unlike last year when Red Dead Redemption 2 helped boost game sales, the dearth of holiday blockbusters would also affect the company’s bottom line.

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https://www.techspot.com/news/81842-gamestop-closing-up-200-stores-worldwide.html

 

[Uncle Al]

Sad to say they are just prolonging the inevitable. They have made a number of noble efforts but unless they can find that magic bullet their fate is sealed. We hope for the best for them!

 

[m3tavision]

This is nothing but great news.

Gamestop should've been closed down 10-15 years ago due to their customer service and treating every customer like a pile of dog ch!t. Not to mention, every Gamestop manager and employee's knows more than anyone walking into the store.

Nobody in the store knows a single thing about PCs, and actually have disdain for people who use a mouse to game. Gamestop caters to children with no money and they try to sell you used stuff. Now there is even less of a point, because games are downloaded. Which is a bonus because you don't have to deal with their clerks, who talk down to everyone in their stores.

 

[Dimitrios]

I can fix this issue quickly.

Step #1 Have gaming contest in Gamestop with cash prizes or giftcards for winners.

Step #2 Have events with hot girls or with famous stars to sign autographs or to play against other players. Like Derek Jeter playing a baseball game against a customer.

 

[EClyde]

It's just a place to hang out

 

[retsxel]

Perhaps if their business practices weren't so predatory they wouldn't be in this position. They did this to themselves.

 

[bolski]

They're still around? Haven't been in one in 10+ years.

 

[ShagnWagn]

Million dollar idea: Gamestop allows us to sell them our used digital games. I have always wondered why we cannot sell off our digital purchases. Not being able to sell digital games we no longer play has killed the resale market. I'm sure the digital stores will do everything they can to not allow this regardless of what we want. Their love of money will probably prevent it. Hopefully I can be proved wrong.