At a conference call with investors on March 26, GameStop’s leaders announced their intention to close more than 300 stores later this year. The retailer’s leadership team states that it is not a reactionary measure at the closure of global stores because of the coronavirus, but some pre-existing identification plans of their stores. GameStop currently has more than 5,500 stores in 14 countries.
According to a transcript obtained by The Motley Fool, Jim Bell, Executive Vice President and Chief Financial Officer of GameStop, explained how they select the stores that will close. This is a proactive process on our part. This is where we see the probability of a significant sales transfer from one store to another. We give up the occupation, we operate with a single employee, we operate a much more efficient and much more profitable store, said Bell.
Despite shop closures in the world because of the new coronavirus, sales have increased at GameStop for March. Bell quotes the increase in demand for our products worldwide as having generated benefits in recent weeks. Consecutive launch of Animal Crossing: New Horizons and doom: Eternal Indeed, the increase in pedestrian traffic for their stores.
GameStop has been criticized for stating that their stores were essential companies and for defied quarantine mandates of the city and the state. Employees at the national level complained of poor sanitation practices and the lack of respect for the health of front-line employees.