GAME to close 35 stores

[Zim]

JOKA_ said:

Seece said:
About time, I think most big cities have at least 2 GAME stores within 5 minute walking distance of each other, made no sense whatsoever.

I know its not the same.  but near me there are TWO gamestops in THE SAME mall.  They are each at opposite ends, I don't understand how stuff like that happens.

 

With GAME it happened because they expanded and had idiots managing the company. Basically the company is actually electronic boutique. However they bought the GAME chain and the name. Then later rebranded all EB stores as GAME. This resulted in a few cases of stores being too close. They then also bought the chain Gamestation. These two purchases meant they had bought around an extra 300 stores. Obviously since they used to be competitors they were often near each other. 

Rather than think of the long term they just went ''Well both are profitable for now, I see no problem in keeping two stores open that are a minutes walk apart''. Despite the fact that really they are just doubling their costs but not really changing revenue. As I doubt many people would be off put by the fact the store location was now a minute walks away. In the Uk you actually end up with ridiculous situations where there are 2 games within a couple of minutes walk and one of them is also opposite a gamestation. So basically you have 3 shops all owned by the same company that are competiting with each other.

Like Mike said it is probably the same in the US. Where one company expands and buys more stores nearby then just keeps both open.