Plus   Neg

GameStop To Shutter Up To 200 Stores

gamestop lt

Video game retailer GameStop Corp. is planning to close about 180 to 200 of its underperforming stores globally by the end of the year. This was announced by GameStop CFO James Bell during the company's second quarter earnings call.

Bell expects a larger tranche of store closures over the next 12 to 24 months after "applying a more definitive, analytic approach, including profit levels and sales transferability," for the remaining stores.

GameStop has closed 195 stores so far, since the second quarter of last year. However, 95 percent of the remaining stores are profitable.

The company had reported a wider than expected loss for the second quarter and also slashed its comparable-store sales outlook for the full-year 2019.

In June, the company also had done away with its quarterly dividend to strengthen the balance sheet. This is expected to preserve about $157 million in cash annually.

The retailer has been witnessing declining sales in recent months with increasing number of customers shifting to online purchases from e-commerce sites such as Amazon. Playing games on smartphones or computers have also grown in popularity.

Earlier this year, the retailer had appointed George Sherman as its new chief executive officer, succeeding Shane Kim. The company also tterminated efforts to pursue a sale of the company due to the lack of available financing on terms that would be commercially acceptable to a prospective acquirer.

GameStop currently operates over 5,700 stores across 14 countries, and offers a selection of new and pre-owned video gaming consoles, accessories and video game titles, in both physical and digital formats. It also offers fans a wide variety of POP! vinyl figures, collectibles and board games.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT