GameStop continues to struggle with weak earnings as it tries to navigate a digital world, causing the upcoming closure of 180 to 200 stores.
The company, which saw sales in the second quarter decrease 14.3 percent to $1.3 billion, has been struggling as more gamers download digital copies of games and subscription services grow in popularity. Same store sales dropped 11.6 percent, the company announced this week.
»BIZ BEAT: Target’s new loyalty program launching for area shoppers
On a conference call with investors, company leaders said the retailer would be closing between 180 and 200 stores, according to multiple media reports.
Most of the “underperforming” closures will come in the next 12 to 24 months.
»RELATED: Two grocery stores with area locations join growing list asking customers not to open carry
New hardware sales including game consoles dropped more than 41 percent, which the company blamed on announcements of next generation console launches next year; software sales declined 5.3 percent; accessories sales decreased 9.5 percent; and pre-owned sales dropped 17.5 percent.
GameStop has been working in recent months to turn around its operation and strengthen the organization. But it decreased its total annual outlook, saying it expects sales decreases in the teens rather than the 5 to 10 percent previously expected.
There are several GameStop store in the Dayton region, including in both the Dayton Mall and Mall at Fairfield Commons. The Dayton Daily News has reached out to GameStop to see if any local stores will close.
FIVE FAST READS
• Starbucks set to open largest coffee store, roastery in November
Kroger launches own line of meatless burgers, plant-based foods
Hurdles and headwinds: Here’s why local small grocery stores are closing
• Kroger, Walmart asks shoppers not to openly carry guns, will allow concealed ones
• Target kicks off holiday hiring spree, looking for 130K workers