Report: GameStop Intends To Close 180-200 Stores Worldwide
In a recent piece published on GamesIndustry.biz, they reported GameStop intends to shut down 180 to 200 stores worldwide.
Earlier today, GameStop had its Q2 earnings call. During the call, a GameStop representative reported that of all the GameStop stores in the world, 95 percent are profitable. Despite those seemingly good numbers, the company plans to close around 180 to 200 stores globally.
Even though the representative said that the number of profitable GameStop stores to be an “impressive statistic,” the company is still going to use this opportunity to “improve our overall profitability by de-densifying our chain." The first part of improving overall profitability starts with the closer of 180 to 200 underperforming stores. However, the representative also claims that the company is also expected to “yield a much larger tranche of closures over the coming 12 to 24 months."
This news comes not long after a string of other unfortunate news concerning GameStop. GamesIndustry.biz reported sales at GameStop have dropped by 14 percent in Q2 earnings. The net loss in Q2 has been stated to be at $415 million, whereas adjusted net loss is posted to be around $32 million.
GameStop also recently laid-off around 14 percent of their total staff, which included 120 GameStop employees and seven members of the Game Informer crew. The layoffs are part of the company’s plans to “reduce costs” and “optimize the business to meet our future objectives and success factors,” reported by Forbes.
Despite the company’s attempts to save cost, the GameStop representative stated the company does not believe they are going to earn profits in the upcoming quarters. The company claims the low profits is because the current console generation is reaching towards its end.
Thanks to Rebekah Valentine on GamesIndustry.biz for most of the new information concerning GameStop. Things do not look good at the moment for the company, with rumors going around suggesting that the company may end up going bankrupt or shutting down most of their stores.