As they move toward a digital platform, GameStop is closing 200 brick-and-mortar stores before the end of the year.
GameStop has made the decision to close 180–200 of their low-performing stores by the end of the year.
The reason? Online shopping. In addition to the growing popularity of regular online shopping (like Amazon), we live in an age where online gaming is becoming more popular, and gamers are able to purchase their games and download them directly to their computer or device without ever exchanging a physical product or currency. That's a big profit hit to a company like GameStop, which relies on the sales of physical copies of games.
While plans for closing up to 200 brick-and-mortar stores ensue, GameStop has also revamped their GameStop.com platform, now allowing users to purchase games or equipment online and pick up in-store.
Don't worry; you will still be able to purchase pre-owned and refurbished game consoles and controllers through their website. The online pick-up option is already active on their site and is available when you check out. Just click on the Pick Up Today button, enter your first and last name, email, and phone number, and submit. The item you purchased will be reserved in-store.
Screenshot Courtesy of GameStop
GameStop hopes that the new online shopping options will increase their overall sales and their stance in the stock market.
“Optimizing our store base for an increasingly digital world is essential for the future and increasing the profit productivity,” Gamestop CEO George Sherman said.
GameStop currently has 5,700 stores in 14 countries and has already closed 195 stores within the last year. There is no word yet on which specific stores are on the chopping block.
Where do you buy your games? Do you think GameStop is on the right track? Tell us in the comments!