GameStop Closing Stores, Company Reports Decline In Sales
GameStop has announced its plan to close 150 stores. This has been caused by its decline in sales in the last fourth quarter of 2016.
According to a report, there are several competitors for GameStop from other retailers. These include Amazon, Best Buy, and Walmart. There are more players that purchase the games online. These games may be purchased through mobile phones or their consoles.
Last year, there has been a 13.6 percent drop in GameStop's global sales. The retailer store has been affected by gamers purchasing online in the recent years. In fact, the retailer for games is planning to close 150 stores this year.
There is no specific list of stores to be closed yet. However, the Technology Brand of GameStop has increased its sales and so it still plans to open technology brand stores. There has been a significant decline of GameStop's game section when the Nintendo Switch was launched this month.
GameStop has faced a challenge when gamers can use the consoles to download games directly. The movement of the games to mobile also caused the decline in sales for the store. Technology has moved forward and players can already purchase most of the games online.
The times have changed and technology has been more advanced. People usually go online to purchase certain stuff instead of going into a physical store. This saves a lot of time and will also cost almost the same.
Meanwhile, it also is reported that the sales for GameStop decreased during the holiday season. This has been the time that there were more sales in the online stores. Big promotions were done for video games on the online stores.
GameStop already reported the decline of their sales this year. The last quarter of the previous year had been the lowest on sales for the retail store. There will further be an official announcement on which stores will close.