GameStop plans to close another 300 stores this year
What you need to know
- GameStop is having a hard time sustaining its business lately.
- This is due to the rise in digital distribution.
- GameStop is planning to close another 300 stores this year.
- This strategy is called "de-densifying" and the company hopes will turn its fortunes around.
It seems like GameStop still hasn't been able to turn its business around and in a recent earnings call, said that it was going to shut down another 300 stores this year. According to a report by Comic Book, the company closed 321 stores last fiscal year but it still has 5,500 locations. That's more than what many clothing retailers have if you wanted a comparison.
The outlet said the following about the situation.
Hopefully, GameStop will be able to recover, but I think it'll have to cut thousands of stores before it reaches a point where it's sustainable. It's no secret that game sales are going towards the digital space, and with expansive cloud game streaming around the corner, GameStop may only be the place you buy consoles and collector's edition, as well as other gaming-related merchandise.
Let's hope that those who will be laid are able to find jobs soon. The global economy isn't doing so well and in the United States alone, over 3 million people have lost their jobs as of now.
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