TrafficCourt

GameStop Closing 200 Stores

The holiday shopping season hasn't officially gotten underway yet, but this year store closing announcements are arriving early. Video game retailer GameStop just announced it will be closing 200 locations next year--in spite of expecting strong fourth quarter sales, according to the Star-Telegram.

The Star-Telegram estimates that approximately 3 percent of GameStop's 6,600 stores worldwide are currently unprofitable:

Arvind Bhatia, an analyst at Sterne, Agee & Leach in Dallas, told Bloomberg News that the moves, along with the store closings, mean that "they're cleaning out the portfolio." He said "having only 3 percent of your stores losing money generally is a fairly healthy number for a retailer."
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish