Gamestop Confirmed To Close Up To 200 Stores In US By Years End As Company Continues To Lose Money

by Jay Cochran
September 11, 2019
Rumors last week began surfacing that some major changes were coming to the former video game giant retailer Gamestop that included closing around half of their physical stores here in the United States.

Yesterday Gamestop held its earnings call where the CEO confirmed they would in fact be closing between 180-200 of their under-performing retail stores here in the United States by the end of the fiscal year. This will be done in an effort to try an optimize their remaining stores in increasingly digital world. It was reported that the retailer had somewhere around a 14 percent loss in global sales this past quarter. There are currently 5,700 stores across 14 countries in operation and they have already closed 195 stores since the second quarter of last year. They also in early August laid off around 200 employees across multiple divisions followed by second round of layoffs a few weeks later which focused on 120 corporate staff positions.

The initial news of the store closings came to light last week from a Youtuber who goes by the name of CAMELOT331, who was a former and seemingly somewhat disgruntled Gamestop employee.

CAMELOT331 has also reported some major changes for the remaining open stores will soon be implemented which includes things like becoming retro and tabletop gaming stores where people can play vintage arcade games as well as things like D&D and HeroClix. That has yet to be officially confirmed but CAMELOTT has admittedly been pretty dead on with his reporting on Gamestop up until this point.

In the past year or so Gamestop has been putting a lot of focus on selling action figures and collectibles, so if the retailer ends up going under in the near future as some fear, it will likely be another retail blow to the toy industry which is still trying to recover after the recent fall of Toys R' Us.




Comments...

Last 10 comments - ( Read All Posts )
Flounnderr - 2020-09-15 @ 1:16 pm

I thought I would chime in on the percentage debate here and let you guys know that 10% is called decimation.

Its extremely devastating when it was practiced in warfare and you can also apply it to physical businesses. While it's not a kill blow to the business it is significant enough to allow for financial restructuring.

I think most people'srelationship to percentages are in terms of discounts, and a 10% discount isn't much of a deal but when applied to trimming a business this is a meaningful first step.

Satam - 2020-09-14 @ 4:58 pm

I haven't even been able to get onto their website for the last two weeks.

mako - 2020-09-14 @ 3:49 pm
25 minutes ago, jlavaia said:

yeah me too. 10% is not alot of stores.

Actually, that's 1/10th of a 100% . . . as in 1/10th of ALL Gamestop stores. I don't care what math you use, that IS alot.

mako - 2020-09-14 @ 2:36 pm

Another one bites the dust.

Never been a big Gamestop guy, but I've gotten real sick lately of watching previously healthy businesses go belly up while Congress can't bring themselves to interrupt their monthly paid vacations long enough to give a crap.

I figure by the time the pandemic,and the mess the governments made of the country in fear of it,is straitened out, there will be exactly two businesses left. The public relations firm the government pays to lie to us about how the economy is improving, and Pelosi's hair-dresser.

Gilgamesh79 - 2020-09-14 @ 12:15 pm

I feel bad for the people losing their jobs but I'm not going to miss the stores. The only time I've bought anything from Gamestop in over a decade has been after it's gone on clearance.

JayC - 2020-09-14 @ 11:35 am
The woes of the video game retailer Gamestop continue during this time of the COVID-19 pandemic. Last week it was announced that their second quarter revenue came in below analysts' expectations despite online sales going up by 800%. Back in March Gamestop had announced it planned to close 300 of it's physical stores globally, but now according to CNN they have raised that number to somewhere between 400-450 stores, with more closures coming in 2021. CFO Jim Bell said the closures would allow us to more efficiently and profitably service our customersRight not there are about 5100 stores remaining worldwide.
Goldbug - 2019-09-13 @ 2:33 am
On 9/11/2019 at 4:18 PM, Outsiders said:

I never went to GameStop because they mainly turned into another Toys R' Us in my city. Both stores would just have employees that worked there to just pop and pull exclusive or chase figures and throw them on eBay.

I have used GameStop online but only if they were carrying exclusive figures that I wanted but not for video games. I personally don't want to deal with a brick and mortar store that will give you $15 dollars for a $60 dollar game you just purchased.

Well those employees should have been fired if they did that.

Plus this article confirms they will try to turn into a social hub for gaming.

https://abc7chicago.com/entertainment/gamestop-closing-180-200-stores-across-us-/5534676/

I don't mind my GameStop stores at all. They aren't a mess either.

memocromatico - 2019-09-12 @ 5:06 pm

I enjoy my games physical, as well as my movies, I still buy cds and albums because I like the art, even if I listen to it streaming. Regardless, I don't do retail anymore, I've found online to be more reliable to purchase the things I look for.

JayC - 2019-09-12 @ 1:03 pm

On one possible positive note, I saw this morning that apparently Collectibles is the only area Gamestop has experienced growth. It was saidcollectibles were up 21.2% year-over-year.

I've said this before but they should just nix the video games all-together and become a national adult action figure and collectible store chain. Yeah it's not going to be as profitable as video games where at the height of Gamestops dominance and likely couldn't sustain as many stores as before but they would basically be unique, a national toy store chain that caters to the adult action figure and collectible collector as it's primary consumer base.

They could rename the stores "POP Stop". Pop being short for Pop Culture.

Figurecollector123 - 2019-09-11 @ 11:39 pm

Surprisingly easier to get legends at GameStop then most other places.

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