GameStop store closures are coming, claiming between 180 and 200 locations, before the end of the years, abandoning plans to revitalize them…
Only two months ago, GameStop revealed plans to rekindle its stores. Now, the company has announced it will shut down up to 200 locations before the year is out.
GameStop Closing as Many as 200 Stores
The company has failed to improve its balance sheet in recent times. In fact, its Q2 global sales declined sharply by 14.3 percent. (That marked an adjusted net loss of $32 million.)
GameStop CFO James Bill let it be known as many as two-hundred stores will close due to under-performance. Bell explained during a recent earnings call:
“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.”
Not withstanding its abandoned plans to reinvigorate stores and/or close locations, it isn’t likely the company’s performance will change in the future. This is, in no small part, due to the introduction of cloud gaming services, such as the upcoming Stadia by Google.