Gamestop woes continue, as the company has announced the closure of a total 400 stores by the end of fiscal year 2020. A significant increase from the previously announced 388 globally, with intentions on closing more in 2021.
The retailer giant has faced significant issues for several years. Recently focusing on game paraphernalia alongside the sale of games to compensate for the growing numbers of digital sales. Gamestop has tried many new avenues for revenue including selling game codes, focusing on Funko Pops, and even publishing several indie games.
The news comes way of the company’s latest earnings call, which it had with investors today for its Q2 earnings. More specifically, the information comes via Jim Bell, the company’s CFO. According to Bell, the company has already closed 388 stores around the world this year, with 206 of these closures coming during this latest quarter, or in other words, the past few months.
As a result of these closures, GameStop’s store count has fallen to 5,122 stores. This is over 600 fewer stores than it had at this time last year. And unfortunately for GameStop employees, the closures aren’t stopping, with GameStop already confirming there’s more coming this year and in 2021.
Not only has GameStop been struggling the past few years
That said, none of this comes as a surprise. but it already announced in 2019 it was planning to close quite a few stores in an attempt to “de-densify.” Initially, the company refused to close stores causing frustration amongst employees who didn’t feel the company had the employees’ best interests in mind. Several employee accounts state Gamestop was not properly supplying employees with proper cleaning supplies and hand sanitizer, causing an uproar on social media with the company responding with plans to do better.
In early July, GameStop made mask-wearing mandatory for customers when entering a store. The mandate took effect in late July giving employees enough time to prep with signs and training. Though the mandate is now in effect, employees are still encouraged to assist those who don’t wear masks to avoid potential conflict.
Covid-19’s impact on the game industry has been pretty substantial. On top of retailers closing and only reopening with major restrictions, developers have had to reorganize schedules with work-from-home mandates now in effect, causing the delay in the development of several games. Publishers have also had to plan alternative digital events in place of conventions typically open to the public, later this week Ubisoft will host its second Ubisoft Forward, dedicated to providing info on new and announced games for 2020 and beyond.