November 1, 2019
Fiscally challenged GameStop is reportedly set to begin closing upwards of 300 stores in Scandinavia in 2020.
The closures have not been officially announced, but store managers in the region confirmed the move, according to Computer Sweden. In addition, an annual management conference was reportedly canceled.
The move comes as the world’s largest video game retailer contends with ongoing consumer migration toward online gaming and console manufacturers delay new product launches until late next year.
GameStop posted a net loss of more than $400 million — or $32 million when excluding impairment charges, in its most-recent fiscal period. Revenue fell more than 14% to $1.28 billion from more than $1.5 billion during the previous-year period.
“We are on track to close between 180 and 200 underperforming stores globally by the end of this fiscal year,” GameStop CFO Jim Bell said on the September fiscal call. The chain operates more than 5,700 stores globally. Bell said the closures marked the beginning of ongoing re-evaluation across all company operating units.
“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,” he said.