American game retail chain Gamestop is going to close at least 150 of their stores due to declining interest from the public. In the recent months, Gamestop shares have fallen more than 13% as of last Friday. Hardware sales took the biggest hit as sales have dropped 29.1% over the last financial quarter, with software sales declining by 19.3%.
According to the chain, the fourth fiscal quarter of 2016 saw Gamestop's global sales drop 13.6% totaling out at $3.05 billion dollars in sales worldwide. That's a staggeringly high number for the rest of us, but for a chain with over 7000 stores throughout America you'll need a staggeringly high amount of money to keep the lights on.
This decline has led the Texas-based retailer to close between 2 and 3% of its stores worldwide as public interest in brick and mortar stores continues to decline in favor of digital sales, which are far more convenient for most players here in the West.
A spokesperson for Gamestop got into contact with the people over at Fortune, saying that the impending closing of select stores is part of an "annual strategy" that has Gamestop close underperforming stores to bring down expenses. In addition to Gamestop closing 2-3% of their stores, they are also investing in new ventures.
In addition to Gamestop closing 2-3% of their stores, they are also investing in new ventures. In the coming fiscal year, Gamestop is planning to open 65 new 'Technology Brand' (gadgets and gear, including Apple products) stores and 35 'Collectibles' stores (merchandise such as apparel, action figures).
Quick TakeWhat we see here is a company trying to adapt to a world where their current setup has been surpassed by newer, more convenient ways of buying your entertainment. Their technology stores serve a much wider niche of people because they are a licensed Apple reseller, and Apple products, collectibles, and apparel are good for business.
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