GameStop To Close Up To 225 Stores Worldwide
(GameSpot PC News)

Next time you try to trade in a used console, you might run into clearance sales--or an empty storefront.Following a year of lower-than-expected sales capped off by a disappointing holiday season, GameStop announced that it anticipates shuttering 2-3% of its stores worldwide in a recent earnings report. Based on this figure, up to 225 of the company´s 7,500 stores worldwide could be facing closure.The retailer`s fourth-quarter profits in 2016 had dipped by 13.6% since those from the prior year, prompting its stock to plunge by 31%. These losses were made in sales of both new games and new consoles, which GameStop attributed to `aggressive console promotions by other retailers on Thanksgiving Day and Black Friday,` as well as `weak sales of certain AAA titles.`As a potential silver lining, GameStop also reported a 27.8% increase in its collectibles sales over the year, mostly thanks to strong sales of Pokemon merchandise and the success of affiliate brands such as the geek-culture merchandiser ThinkGeek and the AT&T technology retailer Spring Mobile. Accordingly, it plans to open roughly 35 new collectibles stores and 65 new technology stores.