150 store closures planned at GameStop

Q4 sales decline and "aggressive" promotions from rival retailers prompt cuts

Gamestop will be closing at least 150 stores throughout 2017 after a difficult holiday sales period at the end of last year.

Fortune reports that the firm saw declines almost across the boad, with hardware down 29% and software down 19.3% for the quarter.

GameStop has reportedly said weak sales of key titles released in the run-up to Christmas were to blame for its troubles, as well as "aggressive" promotions from its competitors.

As a result, the retailer plans to close between 2% and 3% of its stores, estimated at around 150 branches. However, USA Today reports it will offset these closures by opening 35 new Collectible stores and 65 Technology outlets.

A spokeperson stressed that store closures are part of GameStop's "annual strategy" to trim non-productive stores from its offering, something that was announced over three years ago. The spokesperson added: "This is something that will take place throughout 2017."

The reveal of planned store closures follows GameStop's latest financial results, which emerged last week and came as no surprise after a turbulent Q4 2016. Multiple retailers reported that major releases didn't sell in the quantities expected - something GameStop spoke about as early as October - and heavy discounting around Black Friday almost certainly affected performances at each game's launch. Back in November, Rob Fahey pondered whether sales decline is an indication of shifting consumer behaviour and an industry transition.

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Latest comments (2)

Jordan Lund Columnist 10 months ago
"software down 19.3% for the quarter. "

That's actually NEW software sales down 19.3%, not all software sales.

The reason for it is also quite stunning. GameStop is punishing employees who fail to meet USED game sales quotas. As a result, employees are refusing to sell new games when they have stock of used titles.

The sales decline is not market based, it's self inflicted.

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Matheus Producer, Imgnation Studios10 months ago
I believe the main problem is that Gamestop is just a regular store that happens to sell games and game related stuff. I have visited a few stores and none of them had anything special to grab my attention or to keep me in the store.
So if I want to buy a game, a console or anything like that, why would I go to a Gamestop instead of just buying it online?
In my opinion, they should focus on the experience for gamers inside the store, making it fun and compelling for customers to visit it.
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