After a difficult financial year for GameStop, it was obvious that changes needed to be made if the gaming store wanted to survive. In a recent earnings call, GameStop executives announced that one way that the brand could cut back on its financial losses was to close the majority of the ThinkGeek standalone stores. With GameStop set to close ThinkGeek retail locations, at least most of them anyways, the company is hoping this will be enough to begin to climb its way out of a deep financial hole.
With GameStop set to close ThinkGeek standalone stores, things don’t look good for ThinkGeek. However, the brand will not be going away completely, as around 40 stores will remain open, but the majority of the standalone ThinkGeek stores will be shutting its doors. The ThinkGeek brand will still be alive, but the products will now be sold on the GameStop and ThinkGeek websites.
It seems that GameStop is really digging its heels into its collectible business. George Sherman, GameStop CEO, recently said, “We have very successful collectibles business and need to harness the power of the team and the investment made in that team going forward.” Despite being known for its new and used video games, it seems that GameStop is looking to transition to selling more gaming collectibles.
This change is likely caused by the rise of digital gaming. A lot of GameStop customers are likely now buying their games on digital stores instead of heading into GameStop to pick up a physical copy. This trend is definitely hurting the retailer, with the company recently reporting a $673 million financial loss for 2018.
With GameStop set to close ThinkGeek stores, it seems that the company is trying to bring some of the collectible-minded gamers into the store to buy gaming memorabilia. We will have to wait and see if this transition will be enough to help GameStop continue to give power to the players or if the company will end up powering down.
