GameStop is accelerating store closure plans as part of its “de-densification” strategy. The retailer plans to shutter 400 to 450 stores worldwide in fiscal 2020, which ends in February 2021. GameStop already has closed 388 locations this year; the retailer currently operates more than 5,100 stores around the world.
“These closures, along with the growth in our online business and expanded omnichannel capabilities, will allow us to more efficiently and profitably service our customers,” said Jim Bell, CFO of GameStop during a conference call discussing the retailer’s Q2 financial results.
For the three months ended Aug. 1, 2020, GameStop achieved net sales of $942 million, a 26.7% drop from the same period the previous year. Comparable store sales declined 12.7%, even with an 800% rise in global e-Commerce sales.
GameStop attributed the losses to a 13% reduction in total store operating days due to COVID-19 shutdowns, as well as a 10% reduction in its store base as part of the de-densification strategy. Like other non-essential retailers, GameStop was forced to shut many of its locations due to the pandemic, although the retailer was able to establish a curbside pickup program to mitigate some of the losses.
For some time the retailer has been seeking to trim its store count: in September 2019 GameStop announced plans to close up to 200 stores during 2019 as part of a “rebooting” process.