GameStop To Close 200 Stores By February 2020

Buy your games while you still can… Video game retailer GameStop announced this week that it has plans to close between 180 to 200 stores – and possibly more...

(Photo Source: shopdolphinmall.com)

Buy your games while you still can…

Video game retailer GameStop announced this week that it has plans to close between 180 to 200 stores – and possibly more – by February 2020. In its earnings call, GameStop shared that it will expand profitability by reducing its store footprint in some markets.

GameStop currently operates more than 5,700 stores across 14 countries, but by the end of its fiscal year, around 200 underperforming stores will be cut. The company’s stock was down 11.1 percent to $4.52 midafternoon Wednesday, and shares have fallen more than 60 percent year to date.

“Optimizing our store base for an increasingly digital world is essential for the future and increasing the profit productivity,” CEO George Sherman said on an earnings call with analysts.

With more and more consumers turning to digital avenues for gaming, such as on mobile or computers, and using e-commerce sites like Amazon to purchase games, the average lease life of a GameStop has dropped to two years. In an effort to limit cost implications, GameStop is also planning to optimize its stores and make the shift toward digital. The company has launched a new GameStop.com platform, and a new buy online, pick up in-store option.

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