Previously in March, after already closing more than 300 stores around the world, video game store GameStop announced that it would be cutting down another 300 retail locations, but it now seems the number has been bumped up.
During an earnings call with investors, the company said that it plans to close 400 to 450 stores this year, which is roughly 100 more than it previously announced. GameStop’s chief financial officer Jim Bell explained that the closures “will allow us to more efficiently and profitably service our customers.” The situation within the company doesn’t seem to be getting better any time soon either, as Bell added that “there are more to do,” meaning more store closures in 2021.
Earnings-wise, despite online sales surging 800 percent during the second quarter of this year and amounting to 20 percent of its total sales, revenue nonetheless dropped below analysts’ expectations largely due to the ongoing coronavirus pandemic and temporary store closures. An overall decline of 12.7 percent led to the company’s share price dropping by more than 10 percent in pre-market trading.
GameStop currently runs 5,122 stores across the globe, 600 fewer than it had back in 2019.
Elsewhere in business-related news, Century 21 has declared bankruptcy and will be shutting down all its stores.