GameStop Has Closed Nearly 400 Stores This Year
GameStop announces more store closures as the company loses $100 million.
GameStop has closed hundreds of stores so far this year, and more closures are planned.
During the company's latest earnings call, CFO Jim Bell confirmed all the key numbers. In the past three months, GameStop closed 206 stores worldwide. For the year to date, GameStop has closed 388 stores worldwide, and this includes shutting down all of its operations in Denmark, Finland, Norway, and Sweden.
GameStop now operates 5,122 stores globally, and this is 602 fewer than this time last year. For the current fiscal year, GameStop plans to close a total of 400-450 stores.
"These closures, along with the growth in our online business and expanded omni-channel capabilities, will allow us to more efficiently and profitably service our customers," Bell said.
GameStop closed these stores as part of an effort to "de-densify" the business and reduce costs. The retailer also confirmed on an earnings call that it has sold its corporate jet, though the company did not confirm how much money it got for it.
GameStop lost more than $100 million for its latest quarter, which is actually significantly better than the loss of $415 million that the company lost during the same period last year.
With the PS5 and Xbox Series S/X coming soon, it's a big year for GameStop, as the company is historically known to be a market-leader in terms of new hardware sales. GameStop will be among the many retailers that will offer the Xbox All Access subscription program for the new Xbox consoles. The company will also offering its own leasing program, management said on the call, but the full details are not available yet.
Additionally, management said on the earnings call today that they are excited that the PS5 and Xbox Series X have disc drives, which is good news for GameStop's pre-owned business. There will also be an all-digital PS5 and a disc-free Xbox Series S console.