It was being rumored for a bit, but today there is finally confirmation that GameStop is scaling back their operation. This was announced during the Goldman Sachs Technology and Internet Conference by CFO Rob Lloyd. However, it's not over for the retailer just yet, who is still set to open other stores as well.
Which stores will be getting the ax? Of 250, 200 will be within the US. The other ones will be outside of our market. GameStop stores that are unprofitable, as well as those only making small profits, are being taken down. These most often are in areas where there are already other GameStops nearby. This is certainly an issue with the company's over-excitedness to expand over the past few years.
Although a large amount of stores are being closed, the company will attempt to recoup itself by opening up more in other locations. Around 60 new stores will be opened across the nation. Then, they also will contend with the 40 or so stores they gained from GAME in Europe.