GameStop’s Holiday Sales Drop Due To COVID-19 And PS5/Xbox Series X Sellouts

The holiday shopping season is always important for any retailer, but with GameStop having fallen on tough times in recent months and leaning on the launch of the PS5 and Xbox Series X to help turn things around, this holiday season was especially significant. The company has now announced its sales results for the nine-week holiday period ended January 2, and it was a mixed bag.

Total sales dropped by 3.1 percent, and GameStop noted that this downturn was driven by a number of factors. First, GameStop had 11 percent fewer stores this holiday season compared to the last one as part of the company’s “de-densification” strategy. GameStop also noted that sales slid because of temporary store closures and various other impacts related to government restrictions pertaining to the COVID-19 pandemic. Overall, GameStop said it saw lower store traffic, especially in December, as COVID-19 cases surged across America.

Due to these various impacts, GameStop said it believes comparable store sales for the nine-week period would result in a high single-digit to low double-digit decrease. GameStop said it also faces “significant worldwide supply chain constraints” that impacted the store’s ability to secure products “across all sales channels.”

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