GameStop is closing about 100 more stores than it originally planned, with the struggling retailer warning of more closures next year.
The company said in Wednesday’s earnings call that between 400 and 450 stores globally will close this year, which is more than the 320 stores GameStop originally said in March that it was planning to shutter. The increase underscores how badly retailers are performing during the pandemic as shoppers shift their habits online.
GameStop (GME) Chief Financial Officer Jim Bell said in the call that the closures “will allow us to more efficiently and profitably service our customers.” He added “there are more to do”, meaning closures, in 2021 “as well.”
Its second quarter online sales soared 800%, amounting to 20% of its total sales. However, its revenue came in below analysts’ expectations and same-store sales, which were affected by temporary closures because of the virus, declined 12.7%. That sent shares down more than 10% in premarket trading.
Its dismal 2020 follows an equally rough 2019, when it was stung by falling sales of physical video games, one of the company’s mainstays.
GameStop currently has 5,122 stores worldwide — 600 fewer than it did it last year.