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GameStop says it will close at least 320 stores in 2020

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Troubled US video game retailer GameStop says it has plans to close at least 320 GameStop stores on a global basis this year. It is all part of the company’s “de-densification plan.” The news was announced by GameStop’s executive vice president and chief financial officer Jim Bell during the company’s recent earnings call. Here’s what Mr. Bell said:

“We continue to focus on optimizing our global store fleet in fiscal 2019 and closed a net total of 321 stores inclusive of 333 closings and 12 openings. In fiscal 2020, we will continue in our efforts to de-densify our store base, focused on maximizing product productivity of the entire fleet,” he said.

“[We] anticipate store closures to be equal to or more than 320 net closures we saw in fiscal 2019 on a global basis. Importantly, we want to emphasize that these store closures are a very specific and proactive part of our de-densification plan and they are not related to recent business trends.”

Source

7 comments

    1. Store closures like this happen to every business during a hard sales time. The company as a whole is performing better than they were, otherwise they wouldn’t be planning on opening new locations. It’s taken GameStop a lot longer to adapt to the changing times than I would have expected given the knowledge I have of the company but they are adapting.

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      1. What are your sources? Because gamestop’s been doing worse and worse every year. You dont just close 320 locations when you’re doing well. Digital sales and online retailers are killing gamestop and they absolutely havent adapted.

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    1. It says “de-densify.”. I presume that to mean they’re mostly looking at areas that have a bunch of stores in a certain mile radius. For example, where I live, there are 4 of them within 10 miles or so of each other. They could close one of them and not much would change.

      Unless your store is really hurting for business/making very few sales, it’s probably going to be fine.

      Liked by 2 people

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