Gamestop is planning to close over 320 stores by the end of the year.
As Gamasutra reports, CFO Jim Bell discussed the company's plans in a recent earnings call. "[We] anticipate store closures to be equal to or more than 320 net closures we saw in fiscal 2019 on a global basis," Bell said. "Importantly, we want to emphasize that these store closures are a very specific and proactive part of our de-densification plan and they are not related to recent business trends."
By "recent business trends," Bell is presumably referring to the sales dip caused by the coronavirus pandemic, which has forced countless retailers to close due to health risks and a lack of customers. Gamestop has been heavily affected by this as well, and after early efforts to remain open under the guise of "essential retail" (as reported by Kotaku), it is temporarily closing stores following employee outcry.
GameStop has been struggling for years, and as its latest fiscal report shows, its total sales decreased by nearly 20% in the last fiscal year. And again, the company closed 320 stores last year as well. These ongoing closures are part of the company's plan to "de-densify" its locations, driving more business to individual stores and "maximizing product productivity of the entire fleet," Bell said.
Most gamers are hungry for PS5 and Xbox Series X, but Gamestop may be the most invested of everyone, if only because the launch of a new generation of hardware could give its sales a much-needed shot in the arm.
PS5 vs Xbox Series X - here's how the two consoles stack up so far.