Things Continue To Fall Apart For GameStop
Earlier today GameStop announced that they would have to close 180-200 underperforming stores this year. The closures are going to take place globally so every location is under threat of shutting down.
There is good news though. The CFO of GameStop, James Bell, did go on to say that 95% of their current 5,700 current stores are turning a profit. However, it seems as though the struggling company is doing everything it can to cut the dead weight and maximize profits.
“While that is an impressive statistic, we have a clear opportunity to improve our overall profitability by de-densifying our chain,” he said. “That work is well underway. We are on track to close between 180 and 200 underperforming stores globally by the end of this fiscal year. And 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.”
This news is coming in the wake of large amounts of layoffs of GameStop and Game Informer employees. The shutting down of up to 200 outlets is obviously going to result in even more job loss. Further exacerbating the issue.
GameStop has struggled to regain any form of momentum in recent years after announcing record losses. In a desperate attempt to try and get back on their feet, the reeling video game distributor has had to take drastic action in order to change the course of their company.
There has been a myriad of economists who have predicted that GameStop will not make it out of the 2020s. Only time will tell. But it is very possible that we will have another Blockbuster on our hands. The future is digital, not physical.