Ever since the dawn of online shopping, speciality retail stores have been forced to face the ever increasing pressure of competition each year as more and more consumers shop online instead of in-stores. As the numbers for the online userbase get bigger and bigger, brick & mortar companies are being forced to either change with the times or go broke. Getting products shipped almost next day to your porch/mailbox without having to go anywhere is simply too convenient.
And while some are managing to stay afloat for now, others aren’t finding such ease.
Just this week, video game retailer GameStop has announced that they will be closing up to 200 stores worldwide at the end of this fiscal year due to them “underperforming”.
This isn’t the first time GameStop has seen troubles, as just recently they laid off more than 120 corporate employees – including some of their Game Informer staff – as part of their “Reboot” strategy. Last year they announced that they were looking for a buyer, but later cancelled those plans in the early months of 2019.
GameStop’s CFO Jim Bell reported that sales have been on the downfall, with a 14.3% decrease year-over-year and a net loss of 415 million dollars in their Q2 earnings report.
GameStop’s plan, for now, is to close up to 200 stores worldwide, in hopes to reduce any more losses to the company. Bell also noted that 95% of all 5700 GameStop stores are still profitable, and the profit margin for each store is not the only factor when deciding to close it down. In regards to future finances, Bell notes that the rest of the year is going to be rough with not too many big releases scheduled for Q4 – due to the major console launches happening in 2020.
Hopefully, GameStop can keep things together and survive the retail apocalypse without sacrificing too much of what makes it unique. I for one love going to my local GameStop to pick up games and accessories for my consoles – as well as the cool retro games they’ve been stocking recently.
What are your thoughts on the future of GameStop? Let us know in the comments.
GameStop announces 120 layoffs at its headquarters, part of a larger effort to reboot: https://www.star-telegram.com/news/business/article234257917.html
GameStop Just Gave Up on Trying to Sell Company: https://variety.com/2019/gaming/news/gamestop-just-gave-up-on-trying-to-sell-company-1203122042/