GameStop closing 180 to 200 stores this year

GameStop (Image credit: GameStop)

What you need to know

GameStop will close 180 to 200 stores by the end of 2019.
The chain recently laid off 50 field leaders in August.
The video game retailer currently has 5,700 stores worldwide.
GameStop says it plans to close even more stores within the next two years.

For the past several years, GameStop has been a staple for many gamers, but recently the company hasn't been doing so well. Like many other retailers, it's found it difficult to stay afloat with the increase of online shopping. Today, GameStop announced that due to a struggling Q2, the company would be closing 180 to 200 "under-performing" stores by the end of 2019. The company went on to say that it plans on closing additional stores within the next couple of years.

This doesn't come as much of shock considering that the company had a loss of $415.3 million in Q2, which just adds to the 2018 net loss of $675 million. The company recently laid off 50 "regional, district... leaders" in early August as well as seven Game Informer staff. George Sherman, GameStop's CEO, says he has a four-part game plan for getting the retailer back on its feet. This plan includes optimizing core business, becoming the social and cultural hub for gaming, building a digital platform, and improving vendor relationships.

We will set GameStop on the correct strategic path and fully leverage our unique position and brand in the video game industry... We also remain committed to returning capital to shareholders and balancing that opportunity against the need to maintain a strong balance sheet to properly run our business and invest in responsible growth.

At the time of this article, GameStop has 5,700 locations worldwide. The loss of the first 180 to 200 stores might not impact your area, but the additional closures within the next two years just might.

It's hard to watch the video game retailer struggle so openly. If GameStop closes it will make it a lot harder for people to window shop for collectibles that they can purchase cheaper on Amazon. But seriously, the fall of a video game store is something to be worried about. It makes it harder for gamers to find brick and mortar locations to purchase games on release day or simply to find nerdy merchandise that isn't sold anywhere else.

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GameStop sells video games for several different consoles including the Xbox One, PS4, and Nintendo Switch. It's also the perfect place to pick up your favorite gamer memorabilia or nerdy collectibles.