GameStop Store Closures 2019: Gaming Retailer Is Exiting This Market Altogether

GameStop (GME) will reportedly close 52 stores in Sweden, marking its exit from the country altogether.

GameStop announced the closures on Monday, saying it would slowly pull out of the Swedish market by the end of next year, WCCFTECH reported.

GameStop has seen its sales decline as consumers shift away from video game and console purchases, instead opting for streaming alternatives. The company has continued to struggle to maintain a foothold in the gaming sector and back in September, announced the closure of 200 stores worldwide by the end of this year.

The closures in Sweden signal the move by GameStop to shutter locations in markets that are not profitable for the company. The retailer also reduced its employee numbers in 2019, and the number of regional leaders working for the company by consolidating territories.

The closures follow the company’s dismal Q2 earnings report, which showed a 16% decrease in global sales. GameStop also reported a net loss of $673 million in fiscal 2018 - a historic low for the company. The company closed 1,446 stores in 2018.

Through the company’s “Reboot” strategic plan, GameStop said it is looking to revive its struggling sales, which it blamed on the end of the console life cycle in Q2 2019.

Shares of GameStop stock were down 0.58% as of 11:17 a.m. EST on Wednesday.