Like many other brick and mortar retailers, GameStop isn’t doing too well. To cut back on costs, the company is closing a host of stores worldwide.
A new report (via GamesIndustry.biz) points to the company having a lackluster financial quarter, as they’ve posted a big net loss. An earnings call from the company confirmed they’re shutting down between 180 to 200 stores that aren’t meeting their sales figures.
What’s more, the company said they might shut down more afterwards to further recoup their losses, despite GameStop CFO James Bell praising their 5700-plus stores worldwide, saying 95% of them have been profitable.
Previously, GameStop fired a number of the staff at Game Informer, the gaming magazine and website they have owned since the 2000s. Despite the cutbacks and the changes being made, GameStop will probably miss their sales targets for some time, which Bell is blaming on the upcoming end of the current home console generation.
“We expect our year-over-year sales to be down over the next three to four quarters reflecting the end of [the console] cycle,” he said. “Compounding this negative impact on sales is the fact that console makers have confirmed the launch earlier than they have in the past. We anticipate that this will lead to much lighter title slate through the rest of 2019 and early 2020 given the end of the cycle timing for current consoles.
“As a result, at this time we expect a percentage decline of comparable same-store sales for 2019 to be in the low teens, which includes a difficult comparable sales challenge from last year, as we’re up against blockbuster titles like Red Dead Redemption 2, 2018’s number one volume title, without a comparable launch in 2019.”
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