After a few years of only losses for the game retailer GameStop, the CEO has announced that they will be closing 2-3% or their stores across the globe. It was on 25th Of March, 2017 that GameStop announced how they will be shutting down their “uneconomic stores” soon. That refers to places in which nobody really buys anything and the company faces loss because of the maintenance cost.
It is the result of the company’s shares falling about 10-12% once. The sales of hardware declined 30% and the sales of software 20%. “We encountered stiff headwinds as we completed the third year of the console cycle,” GameStop CEO Paul Raines said. According to GameStop its sales had become “weaker” as people have become more inclined towards buying video games digitally from places like Amazon, Steam, and Origin. The Chief Financial Officer said, “We believe that providing only annual guidance will reduce investor distraction as we continue to diversify the company and seek to maximize long-term shareholder value,”
GameStop owns 6,600 stores internationally and 4,400 approximated in the United States of America. The problem is e-commerce has taken over and places like GameStop, Think Geek etc. are not struggling to compete with them as people nowadays think buying things from traditional stores is old-school as it is way easier to just simply get something from Steam or Origin or Amazon. They are not interested in buying physical copies of games like they used to. Things are getting more and more digital, which is more efficient.
Let’s hope GameStop jumps onto the e-commerce platform as well or finds a new way to get attention of the people as it has been the staple video game merchant for decades up till now.