After news that GAME were potentially shutting 40 stores in the UK – placing the blame solely at the feet of landlords in an open letter to press – it appears that GameStop are also closing some doors in early 2020. An email to EB World subscribers, sent to OzBargain suggests that 20 EB Stores will be closing across Australia – and an everything-must-go 20-60% discount sale will accompany it.
The scale of the dwindling store count is pretty similar to GAME UK's situation – both companies stand at approximately 300 stores in their respective countries. However EB Games is part of the GameStop group, and these closures, if true, represent part of a wider culling that smashed through GameStop's global store count last year. In a Q3 2019 earnings call (reported on by GI.biz), GameStop CEO George Sherman revised expected store closures in 2019 from 180-200 stores by the end of 2019, to 250-300 stores within 12-24 months. The company revised its net losses from 5-10% in the previous year, to a number in the "high teens". In the same call, GameStop announced that they were pulling out of Nordic Europe, closing stores in Denmark, Finland, Norway, and Sweden – a retreat to be completed by the end of this year.
Like GAME's "Beyond" spaces in the UK, GameStop are attempting to revolutionise their real estate by offering gaming spaces rather than simple retail stores – though so far the company has yet to offer an official rebranding or adapted these stores at scale.
According to the OzBargain poster, the alleged store closures in Australia are the following. Given the dramatic scale of GameStop's planned closures in the next 12-24 months, this may not be the last of them.
Canberra - Majura ParkHave you been impacted by GAME UK, GameStop or EB closures in the last year? Would you return to brick-and-mortar stores in your area if they offered a space for gaming and esports? Let us know your thoughts in the comments.
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