GameStop has announced that it will be shutting down 2 to 3 percent of their stores due to sinking sales for games and hardware.
The reasons for declining physical sales is the result of an uptick in digital sales and sales via online retailers such as Amazon. GameStop operates 6,000 stores globally.
In a statement on Thursday, Paul Raines, chief executive officer, stated, “GameStop’s transformation continued to take hold in 2016, as our non-gaming businesses drove gross margin expansion and significantly contributed to our profits. Meanwhile, the video game category was weak, particularly in the back half of 2016, as the console cycle ages. Looking at 2017, Technology Brands and Collectibles are expected to generate another year of strong growth, and new hardware innovation in the video game category looks promising. As we continue our transformation plan, we will also be focused on managing SG&A spend, rationalizing our global store portfolio, and maximizing free cash flow generation to drive shareholder value.”
Whether any will close in Columbus remains to be seen, but they operate several dozen in the area — including a prominent location just south of OSU Campus.