Despite the company’s irresponsible dedication to remaining open during the pandemic, GameStop isn’t currently in the most financially viable of places. The company has been sinking drastically over recent years, and despite many different industry figures - including the former president of Nintendo America, Reggie Fil Aime - coming aboard to save the retail giant, it seems nothing is helping in its pursuit to regain financial stability. If a recent report signifies anything, things will seemingly only get worse for the company as well, with more closures for the major retailer allegedly coming this year.
Discussed in an earnings meeting for the company, GameStop announced that it “plans to meet or exceed” the number of closures that occurred last year, with 2019 seeing a whopping 321 stores permanently shut down due to the financial woes currently afflicting the chain. This is no doubt a major deal for those currently finding employment under GameStop, especially with many currently struggling with their own finances in the wake of the Coronavirus.
Alongside the announcement that stores would be permanently closing, the earnings call also comes with a number of interesting statistics surrounding the chain’s profits and how severely it has been affected by the ongoing pandemic. According to GameStop, the Coronavirus outbreak has actually caused a 2% increase in sales, which is no doubt interesting when considering how many high street retailers are experiencing massive declines in sales. The company also claims that they did make a profit in quarter 4 last year, despite also clarifying that it saw a meteoric drop of 28% in sales.
Naturally, many are predicting that GameStop could be on its way out the door if recent events are anything to go by. The store has been hanging on by a thread for the last few years after all, with a number of stories highlighting that the retail giant is making desperate decisions in hopes of finding itself a new niche. The company decided to implement new store designs and put employees under tons of stress to drum up sales last year, while they also began laying off district managers in an attempt to make a bigger profit.
Recently, the chain’s also become a source of controversy due to its attitude towards the Coronavirus, with many calling out the retailer for handling the issue far too lightly. GameStop even claimed it classified as an “essential” store, in the hope of being allowed to remain open despite the spread of the pandemic. Only time will tell if it results in a longer future for the dying chain.
Source: GamesIndustry.biz
