GameStop will be closing stores throughout the U.S. in 2013. According to a Feb. 5 report, between 500 and 600 stores will be shut down and employees will lose their jobs.
With the ability for consumers to download and use mobile devices for games, the store has a low profit margin. Such sales figures are forcing GameStop to close numerous stores around the nation which are underperforming. Exact locations of which ones are yet to be determined. The chain currently has 4,471 stores open in the nation.
Gamestop CEO J. Paul Raines issued the following statement regarding the store closings:
“New software declined at a rate slower than the market, driving another unprecedented 320 basis points of market share growth.
“The GameStop formula continues to show strong resilience in the face of challenging category headwinds, and the new categories of digital and mobile are creating new profit pools that we are exploiting aggressively.”
Other store closings for 2013 are expected to be Best Buy, Barnes & Noble, J.C. Penney, Radio Shack, and Office Depot.