Gamestop is serious trouble financially and to combat its money woes, the company announced it will be closing up to 200 stores around the world before the end of the year.
It was just two months ago GameStop announced it would be revamping its stores in hopes it would lure more shoppers, but it looks like that plan was a dub. The company revealed plans it will be shuttering somewhere between 180 and 200 GameStop locations across the globe for good with more store closings on the horizon for the struggling video game retailer.
The company revealed that it’s quarter global sales were down 14.3 percent, translating into a net loss of $32 million. James Bell, GameStop’s CFO revealed during the company’s earnings call that up to 200 “underperforming” before the end of the year. He also added:
“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.”
GameStop hoped it’s an ambitious idea to team up with designers at R/GA to renovate stores to give them a “place in the video gaming culture” would work. The proposed concept stores were supposed to have layouts that would appeal to gamers by giving them new ways to try games before buying them. They also suggested building shops that would focus on retro games and hardware and host Esports competitions in the stores with local teams.
Looks likes that didn’t solve what ails GameStop, and it’s not looking good for the company for the foreseeable future. With gamers now opting to go digital and the current console generation reaching its end, the well-known company looks like it might be dying a slow death. This could also be karma for the company for ripping us off with those lame trade-in values as well. Bell’s outlook for his company is currently bleak. He also added GameStop expecting it’s year-over-year sales to take a hit for the next three to four quarters.
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