GameStop to close 120 stores, expand market reach

GameStop may be associated by most as being solely a store for video games, but the company is planning on changing that image with a new company-wide initiative.

At GameStop’s Investor Day 2014 earlier this week, the global retailer divulged into corporate plans to expand its brand into markets larger than just the video game industry. This new initiative, being called GameStop 3.0, will see the company expand into “gaming-adjacent tech fields.”

According to the original report from Games Industry International, the retailer will be opening a number of Spring Mobile and Spring Mac locations while closing somewhere between 120-130 brick-and-mortar GameStop locations. The closing numbers represent about two percent of the current number of retail locations which sits at 6,457 stores.

“The benefits of exclusivity far outweigh the benefits of multi-channel sales,” Raines said. “We see exclusivity for GameStop as the right solution.”

CEO Paul Raines explained this decision in more detail earlier this week. Raines stated that while the company believes the console gaming market to total $18 billion by the end of 2015, the company knows that to continue to see success it has to expand it’s footprint.

“Connected devices are forecast to go from $8 billion today to $50 billion in five years,” Raines said. “And many will be sold in a store and available for trade and refurbishment at GameStop. The wireless growth opportunity for GameStop is only beginning.”

The opening of new Simply Mac and Spring Mobile stores will lead GameStop stores to return to being mostly video game stores instead of being stores that buys back and sells smartphones and tablets. Raines believes that the store exclusivity — Simply Mac with Apple, and Spring Mobile with AT&T — will help expand the company by allowing them to hire employees who can then focus on a specific market rather than having to try to know everything.

“The benefits of exclusivity far outweigh the benefits of multi-channel sales,” Raines said. “We see exclusivity for GameStop as the right solution.”

Raines added that GameStop’s buy/sell/trade model will carry over to the new markets. He also said that the company has looked into acquiring other brands in order to continue to expand into even more markets.

Tags: GameStop Technology Video Games

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