GameStop Closing 250 Unprofitable Stores, Opening 60 New Locations in 2013

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News Posted: Thu, Feb 14 2013 9:46 AM
New and used games retailer GameStop is planning to close 250 existing brick and mortar locations, according to comments made by company CFO Rob Lloyd at the Goldman Sachs Technology and Internet Conference in San Francisco, California. Oddly enough, while GameStop is declaring it 'game over' for 250 locations, it will also open between 60 and 70 new stores in 2013.

There's a logical explanation for why GameStop is both opening new and closing down existing retail stores.

"Closing 250 stores enables us to deal with the very small percentage of stores that we have that are unprofitable, but also to close marginally profitable stores and actually make more money by moving customers to other nearby stores," Lloyd explained. "We've been successful at that for two years, and we'll continue that program in 2013."

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Lloyd also talked about the business of selling used games and how, in his opinion, publishers are starting to understand that it's not a bad thing for them. He claims that only 4 percent of used games sales are titles that have been released in the last 60 days "so it does not have a big impact on the sale of new product." He also said that by offering trades to customers, GameStop is able to sell more new games than it otherwise would have, because the company is putting money into its customers' pockets.

Speaking about the possibility of a new console not allowing gamers to play used titles, as has been rumored with the Xbox 720, Lloyd said he's seen research indicating that 60 percent of customers would simply not buy the new hardware.
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Dorkstar replied on Thu, Feb 14 2013 11:10 AM

They've been closing stores slowly around my area, but every time one goes away another gaming store shows up in it's place.

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3vi1 replied on Thu, Feb 14 2013 8:32 PM

Yeah... because GameStop's problem is that it's just too convenient to find a GameStop store to buy games.

Unless they build those 60 new store inside of my Steam client or inside of the MS or PS marketplaces, I think they're denying the inevitable. They should re-tool the stores to concentrate on hardware, and expand their PC/Mac hardware choices before they find themselves shocked when consoles no longer have removable media in 10 years.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

++++++++++++[>++++>+++++++++>+++>+<<<<-]>+++.>++++++++++.-------------.+++.>---.>--.

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realneil replied on Thu, Feb 14 2013 8:44 PM

3vi1:
before they find themselves shocked when consoles no longer have removable media in 10 years

That's where it's all headed.

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FreeJet replied on Sat, Feb 16 2013 9:40 PM

I went in to my local GameStop (for the first time ever) around the Christmas Holidays to exchange a $100 GameStop gift card I won for one of those Steam Wallet things to put cash into my Steam account for games. First of all, I ain't a kid so I didn't look like I belonged in there, and second of all, the store clerk (who had a ring in his lip...Oh joy!!), acted like he didn't know what the heck I was talking about. He actually had to go and ask somebody else where the Steam Wallet things were. After that experience, I got to thinking: How is it that GameStop is trying to promote it's on services while at the same time offering exchanges to competing services like Steam? That just seems counter-productive to me. It certainly is a lot cheaper and convenient to buy a PC game on Steam than from that store...if you can find a PC game in there at all.

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realneil replied on Sat, Feb 16 2013 10:29 PM

Agreed, Steam has them beat all to Hail-n-back.

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

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