gamestop store closures

GameStop Plans to Permanently Shutter About 300 Stores This Year

Last year saw GameStop permanently shutter 321 of its brick and mortar stores. This year, the company “plans to meet or exceed” the same number of store closures. The retailer shared the news in an earnings release yesterday, noting that it currently has 5,500 shops in operation. A new round of store closures furthers GameStop’s efforts to “de-densify” its global business.

The earnings update also provided details on GameStop’s Q4 profits. Despite a 28 percent drop in sales overall, the company did manage to turn a net profit in the fourth quarter. In addition, though the coronavirus pandemic has led to temporary store closures, GameStop did experience a 2 percent increase in store sales throughout the month of March.

However, the coronavirus’ impact is also resulting in a few uncertainties where GameStop’s businesses are concerned. The retailer was notably hesitant to offer any “financial guidance” for this fiscal year. Although, an increase in demand does bode well for GameStop products.

The GameStop-owned Game Informer received an update, as well. Since last August, the media outlet has suffered two different bouts of layoffs. Still, GameStop maintains its commitment to the publication. For example, there are plans in place to “enhance GameInformer asset with interactive digital media.” As of writing, GameStop has yet to outline what this may eventually entail.

GameStop came under fire recently for refusing to close stores amid coronavirus-induced lockdowns. The retailer has since shut down its regular operations. However, there are still ways for costumers to pick up products, dependent upon state and local laws. Of course, online shopping remains an option.