Game retailer Gamestop has announced that it will close 180 to 200 stores by the end of the fiscal year. The company announced its plans with a quarterly revenue call Tuesday.
"Optimizing our store base for an increasingly digital world is crucial for the future and increases profit productivity," CEO George Sherman said during the call. He said by reducing the number of brick-and-mortar stores, the company "had the opportunity to do even better and expand profitability."
According to Gamestop's income report, the company currently operates more than 5,700 stores across 1
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The company's CFO, Jim Bell, also said that 195 stores had been closed over the past year. It is unclear which countries will close stores and which countries will close stores in the future.
Shares for Gamestop fell more than 15% in expanded training after the report was released, according to CNBC.
The video game retailer has struggled as consumers overwhelmingly buy games and gaming equipment online. Mobile gaming trends have also affected the sales of the walls and mortar stores.
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