Wednesday February 13, 2013

GameStop Closing 250 'Unprofitable' Stores

Holy cow, I had no idea GameStop had so many unprofitable stores. Something must be seriously wrong if you can't make money with minimum wage employees crammed into tiny stores that give customers $5 store credit for used games and that you resell for 8x - 10x that amount. eek!

"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," said GameStop CFO Rob Lloyd at yesterday's Goldman Sachs conference in San Francisco. "We've been successful at that for two years, and we'll continue that program in 2013."