On January 26, Gamestop Corporation announced it would close 150 stores worldwide due to “a challenging retail environment.” The move comes as the company faces increased competition from digital downloads and streaming services such as Netflix (NFLX) . The stock market reacted negatively to the news, with Gamestop shares falling more than 5% in after-hours trading.
This is just the latest development in a difficult year for Gamestop. In May, the company announced it would close 150 stores due to “a challenging retail environment.” The move comes as the company faces increased competition from digital downloads and streaming services such as Netflix (NFLX) .
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Gamestop isn’t the only company feeling pressure from the shift to digital. Toys “R” Us, Macy’s (M) , J.C. Penney (JCP) , Sears (SHLD) , and other retailers have all announced store closings in recent years. The move by Gamestop is likely to put even more pressure on the already struggling retail sector. The Gamestop closures come as the company faces increased competition from digital downloads and streaming services such as Netflix (NFLX) .
Digital downloads and streaming services are convenient for consumers and often offer a cheaper alternative to buying physical copies of games or renting DVDs. It’s not just movies and games that are moving to digital formats. Music, books, and even groceries are all being delivered digitally more and more often. The shift to digital is inevitable, but it’s putting pressure on traditional retailers like Gamestop. As consumers increasingly turn to digital alternatives, companies like Gamestop will need to find ways to adapt or risk becoming obsolete.
Gamestop isn’t the only company feeling pressure from the shift to digital. Toys “R” Us, Macy’s (M) , J.C. Penney (JCP) , Sears (SHLD) , and other retailers have all announced store closings in recent years. The move by Gamestop is likely to put even more pressure on the already struggling retail sector. The Gamestop closures come as the company faces increased competition from digital downloads and streaming services such as Netflix (NFLX) . Digital downloads and streaming services are convenient for consumers and often offer a cheaper alternative to buying physical copies of games or renting DVDs.
It’s not just movies and games that are moving to digital formats. Music, books, and even groceries are all being delivered digitally more and more often. The shift to digital is inevitable, but it’s putting pressure on traditional retailers like Gamestop. As consumers increasingly turn to digital alternatives, companies like Gamestop will need to find ways to adapt or risk becoming obsolete. Gamestop isn’t the only company feeling pressure from the shift to digital. Toys “R” Us, Macy’s (M) , J.C. Penney (JCP) , Sears (SHLD) , and other retailers have all announced store closings in recent years.
The move by Gamestop is likely to put even more pressure on the already struggling retail sector. The Gamestop closures come as the company faces increased competition from digital downloads and streaming services such as Netflix (NFLX) .Digital downloads and streaming services are convenient for consumers and often offer a cheaper alternative to buying physical copies of games or renting DVDs.
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It’s not just movies and games that are moving to digital formats. Music, books, and even groceries are all being delivered digitally more and more often. The shift to digital is inevitable, but it’s putting pressure on traditional retailers like Gamestop. As consumers increasingly turn to digital alternatives, companies like Gamestop will need to find ways to adapt or risk becoming obsolete.
The move by Gamestop is likely to put even more pressure on the already struggling retail sector. The Gamestop closures come as the company faces increased competition from digital downloads and streaming services such as Netflix (NFLX) . Digital downloads and streaming services are convenient for consumers and often offer a cheaper alternative to buying physical copies of games or renting DVDs.
