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GameStop to close up to 200 stores by the end of the year after decline in sales
The decision came after the company reported larger-than-expected losses.
GameStop will shutter between 180 to 200 under-performing stores by the end of the year, executives said after the company reported a larger-than-expected decrease in sales.
The video game retailer made the announcement Tuesday in a conference call with analysts. Earlier that day, the company released its earnings report for the second quarter of the year that "admittedly were below what we would want," according to the company’s chief financial officer, Jim Bell.
Total sales were down 14.3% compared to last year’s numbers, according to the fiscal report.
The closures of the stores will happen globally, but Bell did not say what exact locations. GameStop has more than 5,800 stores across 14 countries, according to the company.
A "much larger tranche" of store closures are expected over the next 12 to 24 months, Bell said.
GameStop’s CEO George Sherman said the closures will be "lucrative to the overall business model."
The executives at the company also acknowledged the expectation among consumers for digital access.
Sherman said GameStop launched a new website platform in August that gives users a new buy online and pick up in-store option.
"Optimizing our store base for an increasingly digital world is essential for the future and increasing the profit productivity," Sherman said.
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