GameStop is on track to close up to 200 underperforming stores this yearpennlive.com — Aviva Luttrell pennlive.com
Sept. 11--GameStop is on track to close up to 200 underperforming stores by the end of this fiscal year.
Chief Financial Officer Jim Bell said during Tuesday’s quarterly earnings call with analysts that the brick-and-mortar video game retailer will likely close 180 to 200 underperforming stores by the end of the fiscal year as the company faces declining sales.
GameStop’s second quarter total global sales decreased 14.3 percent to $1.3 billion, according to a report from the company.
“We are committed to acting with a sense of urgency to address the areas of the business that are critical to achieving long-term success and value creation for all our stakeholders,” George Sherman, GameStop’s chief executive officer said in a statement. “We will set GameStop on the correct strategic path and fully leverage our unique position and brand in the video game industry.”
That strategic plan includes improving business efficiency through cost restructuring and other means, improving customers’ store experience, building compelling digital platforms -- including the relaunch of GameStop.com -- and transforming vendor partnerships.
“While we experienced sales declines across a number of our categories during the quarter, these trends are consistent with what we have historically observed towards the end of a hardware cycle,” Bell said. “We will continue to manage the underlying businesses to produce meaningful cash returns, while maintaining a strong balance sheet and investing responsibly in our strategic initiatives.”
GameStop has already closed 195 stores since last year.
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