Gamestop To Close 300 Stores, PERMANENTLY
NEW YORK, NEW YORK – SEPTEMBER 16: People pass a GameStop store in lower Manhattan on September 16, 2019 in New York City. GameStop has announced that they will be closing between 180 and 200 stores before the end of the fiscal year due to a drop in sales. (Photo by Spencer Platt/Getty Images)
The bad news for Gamestop continues as the video game retailer announced that it’s closing 300 for good. The maligned company said that the move is a part of their plan to “de-densify”.
In an earnings call, Gamestop revealed their plans for the closures. Gamestop CEO, George Sherman, said that the company expects to close more stores in 2020. This comes as no surprise as Gamestop reported over $470 million in lost revenue for 2019. Gamestop still operates over 5,000 stores in the United States.
It hasn’t had the best few of years for Gamestop as digital distribution of games increased. Recently, the company brought on former Nintendo executive, Reggie Fils-Aime, to its board of directors to right the ship. However, with such losses its hard to see how anyone can help the company recover. And Gamestop isn’t doing itself many favors in the press. The company classified itself as “essential retail” and remained open when many states were shutting down due to COVID-19. Eventually, Gamestop did shutter its doors for retail sales but not before a wave of negative social media reactions.