By Brittany Spurlin | Source bestecasinonorge.co.com
1/11/2021

The holidays weren’t merry for beleaguered video game retail chain GameStop as the company’s net sales for the nine-week period ending Jan. 2 topped $1.8 billion, a 3 percent decrease year-over-year decrease.

GameStop cites a reduction in its brick-and-mortar store base for the decline in sales. Over 450 GameStop stores were closed in 2020, while 321 storefronts shuttered in 2019. Temporary store closures due to the COVID-19 pandemic also contributed to decreased store traffic.

Significant supply shortages of next-gen consoles, such as Xbox Series X|S and PlayStation 5, also affected GameStop’s sales adversely, as the company was unable to distribute products to customers across various sales channels. However, demand for those consoles remains high and GameStop believes that demand will drive sales well into 2021 as the supply of next-gen consoles increases.

It wasn’t all coal in GameStop’s stocking, however, as total comparable store sales increased 4.8 percent year-over-year, while e-commerce sales increased 309 percent. E-commerce sales represented 34 percent of total company sales, bringing in over $1.4 billion in revenue. This exceeds GameStop’s $1 billion growth objective.

GameStop CEO George Sherman sees this trend as a positive indicator for the company’s future, noting the “significant increase” in e-commerce sales and looking ahead to continued demand for next-gen systems.

“Demand for the generation of new consoles remains very strong, and as a result, we anticipate the consumer’s excitement for the new console technology will benefit us going forward well through 2021,” he said.

GameStop’s fourth quarter and full 2020 fiscal year results will be reported in March.

Photo courtesy of Sony Interactive Entertainment Inc and Microsoft

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