Even though 95% of GameStop's 5,700 stores were yielding revenues, according to CFO James Bell, the company is shutting down 200 stores in the US, Techspot reported Tuesday, September 11th.
“We have a clear opportunity to improve our overall profitability by de-densifying our chain,” Bell said, adding that more stores will follow.
"We are applying a more definitive, analytic approach, including profit levels and sales transferability, that we expect will yield a much larger tranche of closures over the coming 12 to 24 months,” said Bell.
GameStop is currently going through a reboot initiative to assess and improve the company’s overall performance.
The company laid off 170 GameStop workers were last month, and ThinkGeek’s online store was merged with its parent company.
As the current console cycle draws to an end, GameStop expects sales to go down in the upcoming three to four quarters. The last quarter yielded a net loss of $415 million.
The 2018 release of “Red Dead Redemption 2” significantly pushed sales up.