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GameStop To Close Around 500 Locations In 2013

GameStop

GameStop will reportedly close between 500 and 600 locations around the United States in 2013.

Over the course of the next 12 months, the largest brick-and-mortar retailer devoted to selling video games will shutter hundreds of locations throughout the country. Unfortunately, this means lots of people may have to find employment elsewhere in the very near future.

According to Gamer Cheese, weak sales and a backlash from customers have forced the company to drastically cut back on the number of stores it has at its disposal. The website also sites the rise of downloadable and mobile games as another reason the retailer continues to struggle in the market.

A significant portion of GameStop’s business comes from used video games. However, other companies have started venturing into this area in recent months. Both Best Buy and Target reportedly sell used games at many locations in the US.

The Examiner explains that GameStop CEO J. Paul Raines previously discussed how the company is adapting to the current changes taking place within the gaming industry. Trimming underperforming stores could help GameStop stay afloat until the next generation of consoles from Microsoft and Sony are up for grabs.

Raines explained:

“New software declined at a rate slower than the market, driving another unprecedented 320 basis points of market share growth.

“The GameStop formula continues to show strong resilience in the face of challenging category headwinds, and the new categories of digital and mobile are creating new profit pools that we are exploiting aggressively.”

According to Yahoo! News, GameStop isn’t the only retailer facing numerous closings this year. In addition to Barnes & Noble and RadioShack, former heavyweights Office Depot and Office Max will reportedly shutter hundreds of locations during 2013.

GameStop currently operates 4,471 locations in the United States. It’s unknown when the company will begin closing down stores.

[Image by Wikimedia Commons]

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5 Responses to “GameStop To Close Around 500 Locations In 2013”

  1. Brittany Kane

    They are seriously the worst, most unorganized company I have ever worked for. They pay nothing, refuse to promote from within, and are constantly threatening the closing of stores and loss of jobs to get sales to go up. They deny you breaks, they leave you alone for hours at a time. I was a supervisor for over a year, and I have to say, worst company ever.
    I've seen them screw over customers, too. =/ Not the people who work in the stores fault, district management and up. Terrible people who give zero f*cks about anyone below them.

  2. Amanda Elizabeth Baker

    yea. trading in like 4 semi news games for about 10% off a newer game that's been out a while isn't exactly fair or even worth it for that matter. I buy most of my games online because its so much cheaper. I've been saying this for years, Gamestop has always been a freakin' ripoff.