150 store closures planned at GameStop
Q4 sales decline and "aggressive" promotions from rival retailers prompt cuts
Gamestop will be closing at least 150 stores throughout 2017 after a difficult holiday sales period at the end of last year.
Fortune reports that the firm saw declines almost across the boad, with hardware down 29% and software down 19.3% for the quarter.
GameStop has reportedly said weak sales of key titles released in the run-up to Christmas were to blame for its troubles, as well as "aggressive" promotions from its competitors.
As a result, the retailer plans to close between 2% and 3% of its stores, estimated at around 150 branches. However, USA Today reports it will offset these closures by opening 35 new Collectible stores and 65 Technology outlets.
A spokeperson stressed that store closures are part of GameStop's "annual strategy" to trim non-productive stores from its offering, something that was announced over three years ago. The spokesperson added: "This is something that will take place throughout 2017."
The reveal of planned store closures follows GameStop's latest financial results, which emerged last week and came as no surprise after a turbulent Q4 2016. Multiple retailers reported that major releases didn't sell in the quantities expected - something GameStop spoke about as early as October - and heavy discounting around Black Friday almost certainly affected performances at each game's launch. Back in November, Rob Fahey pondered whether sales decline is an indication of shifting consumer behaviour and an industry transition.