GameStop to Close 700 Stores This Year

GameStop to Close 700 Stores This Year

Company closed 74 stores in 3rd quarter, marking 462 closures this year

Game retailer GameStop revealed in a conference call and quarterly financial report for the third quarter ending on October 31 on Thursday that it is closing 700 stores this year. In a strategy to “de-densify” the GameStop store base, the company closed 74 stores in the third quarter, for a total of 462 stores this year so far.

Since 2019, GameStop has closed about 800 stores worldwide, and it expects to close a total of 1,000 by the end of the 2020 fiscal year.

GameStop’s net sales were down 30.2% compared to the third fiscal quarter of 2019, which the company stated is due to the past few months being the end of a game console cycle, limited availability of hardware and accessories, an unplanned shift of software into the fourth fiscal quarter or to fiscal 2021, and an 11% reduction in the store base. GameStop experienced a 24.6% decline in comparable store sales and a 257% increase in global e-commerce sales.

GameStop expects to have positive comparable store sales results and profitability in the fiscal fourth quarter. In November, the comparable store sales increased 16.5%, and its total net sales were US$791.1 million, compared to US$747.6 million in November 2019.

Sources: GameStop, ICv2 (Milton Griepp)


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