An unsettling change is coming to GameStop stores. During a Q2 earnings call, Chief Financial Officer James Bell confirmed that some of the stores are going to be closing. Before 2019 ends, between 180 and 200 stores are going to be closed.
However, it is important to put this data into context. While up to 200 GameStop stores will be closing, there are over 5,700 stores around the world. So while that number might sound big, it only means about 3.5% of all stores are closing. Also, the ones closing will be “under-performing” ones.
Though, there are also some scary numbers and reports too from this call. The company Q2 earnings report had an adjusted net loss of $32 million and a net loss of $415 million. Also, Bell said, “…We expect will yield a much larger tranche of closures over the coming 12 to 24 months.” So more stores will close in the future.
This comes after different rumors about possible GameStop plans. There were rumors of it being sold back in January 2019. In early September 2019, some people were suggesting all GameStop retail stores could close in 2020. There was also talk about a retro-only store in July 2019.
On the plus side, GameStop did recently reveal a Guaranteed to Love It plan in April 2019. This lets people who purchase some new games, play them, and return them within 48 hours to get in-store credit equivalent to the full value of the game.