Hey there Friends!
So what is this about GameStop losing business?
So much that they are looking to close roughly 150 stores this year??
How did this happen?
Most of us can remember when GameStop was our only place to go for great games and good deals… For me it still is. I mean…I know I can head over to GameStop and find pretty much anything I need. I know that’s where to find the best selection of games and accessories. Ordering online with GameStop is even better, there you can find even more merchandise and even more deals.
So when I heard this news… it really made me sad. It’s certainly a day I thought would never happen. I actually heard this a few months back and I was hoping it was just a rumor but, in fact, I thought it had to be.
Not GameStop?? Really!?
Unfortunately, the numbers do not lie. I just thought they were too big… had the market cornered kind of situation.
Sadly, my friends…. It has been reported that GameStop certainly is closing 150 store locations… which calculates to somewhere around 3 percent of its business total. Not huge numbers but still surprising.
Between 2009-2015, retail sales for the store dropped from 80% down to only 44%. All thought to be due to very low holiday sales. Meanwhile, digital sales were through the roof from 20% to 56% of the industry. Will GameStop be an online only store in the near future? Makes you wonder, though, doesn’t it?
GameStop has 75,000 shops globally so losing 150 stores may not seem like that much but it could be just the beginning and as a long time loyal customer, I truly hope not. Slive.com was reported as saying that the dramatic drop in sales was mainly due to increased competition from online retailers, causing a $3.05 billion dollar loss during GameStop’s fourth quarter in 2016.
You guys… this just really blows my mind. GameStop set the standard for gaming stores… and let’s face it our options are slim except for shopping online right now as it is. My concern is that eventually, we won’t get the same GameStop experience.
How many of you feel right at home walking through the doors of your local GameStop. I certainly do… it almost creates its own sense of community. A place where we can always go for advice… a place where we can go to with all our gaming needs. I may be old school but, I don’t want to lose that.
Paul Raines, CEO of GameStop says, “The video game category has been weak, especially in the later half of 2016, as the console cycle ages. Looking into 2017 technology brands and collectibles are expected to generate another year of strong growth and new hardware innovation in the video gaming category looks promising.” This gives me hope. It seems they have a plan in place to work with consumers so that they can save their sales.
Smart move GameStop!
According to Raines, additional gaming sales also struggled as Sony’s PlayStation and Microsoft’s Xbox have not been updating their consoles nearly as much. Game creators have been focusing a lot more on mobile products, streaming and as we talked about recently virtual reality development. As we know this is the hotspot of the gaming industry right now.
The retailer is definitely betting on the new Nintendo Switch… they are hoping for it be as big as the Wii, hoping the sales will be as big too. “The switch has provided a dramatic lift in traffic among stores and has real potential to be very Wii-like in its abilities to expand the gaming category from core to broad audiences.” Raines acknowledged recently.
Despite the decrease in sales, GameStop, the Texas-based store, has plans to open new stores in 2017 as well. This may have you a bit confused, as it did me… at first…
The company says it plans to open up but, with a different selling point. They plan to open 35 collectible stores and 65 new technology brand stores. The company states that the closing of these 150 GameStop stores is all part of its annual strategy to weed out the locations that are not turning a profit anymore.
Back in 2008 most of GameStop’s profits came from in store sales. Since then shopping online has become more mainstream, this is what I believe to be the main cause of the decline in sales. As far as my research goes anyway.
Well… all I can say my friends is this… let’s get out there again and support our local GameStop’s! For all you die-hard online shoppers… The next time your shopping for a new game, think about this blog. Get out there! Make some connections… or just grace your local store with your awesome presence, they will be more than happy to have you!
As always… I SOOOO appreciate you stopping by Ky’s Korner!
Until next time friends!
To read more from Ky Lynn click here