GameStop To Close Around 500 Locations In 2013
ByDate: 02-05-2013 Views:
GameStop, the largest video game retailer will reportedly close between 500 and 600 locations around the United States in 2013.Unfortunately, this means lots of people may have to find employment elsewhere in the very near future.
According to Gamer Cheese, weak sales and a backlash from customers have forced the company to drastically cut back on the number of stores it has at its disposal. The website also sites the rise of downloadable and mobile games as another reason the retailer continues to struggle in the market.
A significant portion of GameStop's business comes from used video games. However, other companies have started venturing into this area in recent months. Both Best Buy and Target reportedly sell used games at many locations in the US.
The Examiner explains that GameStop CEO J. Paul Raines previously discussed how the company is adapting to the current changes taking place within the gaming industry. Trimming underperforming stores could help GameStop stay afloat until the next generation of consoles from Microsoft and Sony are up for grabs.
"New software declined at a rate slower than the market, driving another unprecedented 320 basis points of market share growth.
The GameStop formula continues to show strong resilience in the face of challenging category headwinds, and the new categories of digital and mobile are creating new profit pools that we are exploiting aggressively."
According to Yahoo! News, GameStop isn't the only retailer facing numerous closings this year. In addition to Barnes & Noble and RadioShack, former heavyweights Office Depot and Office Max will reportedly shutter hundreds of locations during 2013.
GameStop currently operates 4,471 locations in the United States. It's unknown when the company will begin closing down stores.