GameStop Is Going to Close at Least 150 Stores
GameStop is set to close between at least 150 stores following fourth quarter sales declines in almost all of its segments.
The Texas-based company said Thursday that hardware sales declined 29.1%, and new software sales fell by 19.3% for the quarter, CNBC reports. Shares of GameStop then dropped more than 10% in early trading Friday.
GameStop said it expects to close 2-3% of its stores, however it will be opening 65 new Technology Brand stores and 35 Collectibles stores, according to USA Today. The American video game and electronics retailer cited weak sales of particular video game released during the holiday season as well as other retailers using “aggressive” promotional techniques as reasons for the decline.
A spokesperson from GameStop told Fortune that the closure of the stores is part of an “annual strategy” to close up to non-productive stores that was announced more than three years ago. “This is something that will take place throughout 2017,” their statement added.