Only two months after GameStop announced plans to breathe new life into its stores, the company has now announced that between 180 and 200 stores around the globe will be closing their doors for good before the end of the year. After that more closures are coming.
The company’s second-quarter global sales decreased 14.3 percent, for an adjusted net loss of $32 million. So, GameStop CFO James Bell announced that up to 200 “underperforming” stores will be closed between now and the end of the year. Bell added that “While these closures were more opportunistic, 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.”
Even with these closures and efforts to revamp their other stores, it likely won’t help GameStop. After all, we are at the end of the current console generation and right now we have weaker title launches. Bell knows this and said that the company expects its year-over-year sales to be down for the next three to four quarters.
The company was at one time very strong and a go-to place for most of us to buy our video games from.