After another quarter of declining sales, GameStop announced today that it would close 200 of its more than 5,800 stores before the end of the year.
The company posted a $32 million loss for the quarter as global sales decreased 14.3%. Earlier this year, GameStop posted a $673M annual loss, its first since 2012. The store closures will affect “underperforming stores.”
The news of store closures comes less than a month after the company cut more than 100 corporate staff positions and laid off nearly half of Game Informer‘s editorial staff. Game Informer is a GameStop-owned video game magazine and website.
New hardware sales were off 41.1% as next-generation consoles like the PS5 come into view. Used game and hardware sales, the company’s lifeblood, also dropped 17.5%. The one positive nugget for the company was that sales of collectibles increased by 21.2%.
GameStop is planning to reboot the company. Part of the plan includes becoming a “social and cultural hub” for gamers, which could include reinventing stores with new layouts, e-sports, and retro games.
The company also plans to build off of its recent relaunch of GameStop.com and “build compelling digital capabilities” to give customers “the full spectrum of content and access to products they desire.”
CEO George Sherman says that GameStop remains “committed to acting with a sense of urgency to address the areas of the business that are critical to achieving long-term success,” vowing to “set GameStop on the correct strategic path and fully leverage our unique position and brand in the video game industry.”