Citing other retailers’ “aggressive” promotions as a contributing factor
According to GameStop’s earnings report (as reported by CNBC), the company is closing 150 stores this year and had weaker fourth quarter sales.
As hardware sales had dropped 29.1% and software had dropped 19.3%, GameStop announced the closures are part of an annual plan revealed three years ago to trim out “non-productive” stores, according to Fortune. USA Today also notes GameStop “blame[s] weak sales of certain blockbuster video games” released during the holidays and other retailers’ “aggressive console promotions” for their fourth quarter slump. More folks are heading to Amazon, and other competing retailers who can offer a little more bang for their buck.
But while the closures account for two to three percent of the 7,500 retail locations, GameStop is expanding their non-video game centric enterprises. Plans are to open 65 “technology brands” locations (like Cricket Wireless) and 35 collectible (ThinkGeek) stores since those brands actually are increasing in sales (44% and 28% respectively).
Replacing 150 video game stores with 150 other things definitely shows a shift in GameStop’s retail philosophy as overall better deals have become available. You know, I’d probably shop there more if trade-ins were more valuable. I’m sick of being offered pennies to the dollar. But that’s another story altogether.
GameStop to close 150 stores [USA Today]
