GameStop is growing its electronics business by investing between $35-$40 million into a new line of tech-orientated stores. The retailer hopes to open some 400 sites before the end of the next fiscal year.
It comes as GameStop seeks to expand its wares, and follows some 200 sites in the US already selling Apple and AT&T mobile phones in-store. In the last financial year’s fourth quarter, the firm saw $63 million in revenue from its Technology Brands line, which is small compared to the company’s overall income, but is seen as an area of potential growth.
Now, the retailer will open between 300-400 new stores across the new fiscal year, and they will be a mixture of new-builds and acquisitions. It was confirmed that GameStop closed 2% of its stores last year, and will close a further 2% in the new fiscal year.
CEO Paul Raines during the investor call, “As we have gotten into the Apple relationship and the AT&T relationship, what we see is that those companies really need better and more sophisticated distribution that can present their products in appropriate ways. There is a fragmented dealer base around the United States. We are a great way to go to market.”
There is no word on when the stores will begin, but we’ll have more as it comes.
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