The GameStop Corporation shocked the retail industry by announcing that 300+ locations across the United States of America will be shutting down throughout 2020. GameStop representatives claimed that this is part of an internal plan, with these closures not being a direct response to the Covid-19 Pandemic. Most retail analysts believe that GameStop is lying about the internal plan and being forced into these closures after an onslaught of bad PR.
The implementation of these closures will begin after the Covid-19 Pandemic is completed. 320 locations will be closed, with all respective employees being terminated. This is expected to force 10+ thousand jobs back onto the retail market. Those numbers will become exceedingly higher with additional closures coming from other companies in the retail market. It should be noted that this won’t put GameStop into bankruptcy, as there are 5500 locations worldwide. That number was exceedingly higher five years ago.
The official statements listed with GameStop Representatives reads: “We’ve been internally reviewing our fiscal strategy throughout 2020 and determined maximizing product availability isn’t possible. We are anticipating the closures of 320 locations in the United States. We emphasize that these store closures were determined after extensive discussions before and after the Covid-19 Pandemic. The De-Densification Plan doesn’t relate to the recent market trends or our stock valuations”.
The Real Reason
Covid-19 was the final nail in the coffin for these 320 GameStop locations. Corporate had recently created considerable backlash against their brand by determining GameStop as an essential service. This prompted the government to enforce GameStop to shut down during the Covid-19 Pandemic. Then it was informed that employees wouldn’t receive any relief aid and if they stayed home for sick days, they’d then be fired. Numerous supporters behind the GameStop brand informed corporate that they’d lost their business.
It’s not known which locations will be closed. Financial analysts working for GameStop will review each of the 5500+ locations across America, determining which have the lowest profits. Employees have started to become vocal about the worsening conditions at GameStop, with this expected to have increasing adverse affects on this gaming brand.