The video game retailer chain GameStop has been struggling for the past several years, dealing with a pushback against the company’s methods, increased digital buying of games, and now the Covid 19 pandemic driving away a great deal of business. The number of GameStop store closures has jumped from 320 to 400 or 450.
Along with that, GameStop also said that there would be more closures coming next year in 2021. This would bring GameStop store numbers down nearly a thousand stores since last year. Currently, the chain has 5,122 stores open, but that’s still 600 less than in 2019 where there were already many store closures.
The news isn’t all bad for GameStop, since they recorded an 800 percent increase in online sales in the second quarter of this year, which totaled around 20 percent of their income. But, at the same time, the profits were below estimations, and same-store sales declined by 12.7 percent because of the many temporary store closures due to the pandemic.
More GameStop store closures means that the chain is still having difficulty adjusting to the changing game market. The store, along with selling video games, also sells a wide variety of pop culture memorabilia, and most of sales strategies are marketed towards used games (something else currently changing due to Game Pass). By-now memetic stories of how little money people get for trading in games, along with stories toxic work culture, doesn’t help either.
Earlier this year, GameStop hired former Nintendo of America president Reggie Fils-Amie to be on a board position to assist the company, but it seems that even he’s not going to be able to turn the retailer’s situation around any time soon, especially considering all of the other ways that gamers can get games these days.
There’s no list of exactly what locations will be getting hit by the GameStop store closures, but we extend our sympathies to any laid off employees of GameStop, especially in these difficult times.