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GameStop will close up to 200 stores by the end of the year



Signage is displayed as a customer viewed at a GameStop Corp store. in West Hollywood, California.

Patrick T. Fallon | Bloomberg | Getty Images

GameStop plans to close between 180 and 200 lower-performing stores by the end of its fiscal year.

The announcement on Tuesday came after the company reported great fiscal second-quarter revenue after the bell, which missed analysts' expectations and dropped. his sales forecast for the same store for the year.

He stated that he now expects same-store sales to fall in the low teens, compared to previous expectations of a drop of between 5% and 1

0%. Shares of the company fell 11.1% to $ 4.52 after Wednesday.

"Optimizing our store base for an increasingly digital world is essential for the future and increasing profitability," CEO George Sherman said in a profit interview with analysts on Tuesday. "However, we know that we have the opportunity to do even better and expand our profitability by disabling our store footprint in some markets. We are committed to both closing down profit places and increasing productivity through profit "

Sherman notes that the average lease term of a GameStop store is only two years, and he said the company would make decisions to limit the cost implications.

The company currently operates over 5,700 stores in 14 countries, according to a revenue report. The company's chief executive, Jim Bell, also said that GameStop closed 195 stores in the second quarter of last year.

Consumers are increasingly focusing on digital paths for games, such as on mobile devices or computers. They also use e-commerce sites like Amazon to buy games. GameStop, however, said it plans to optimize its stores for the transition to digital. Sherman has announced the launch of a new GameStop.com platform and a new online purchase, grab an option at the store.


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