Retailer GameStop is closing 55 stores in the United States after holidays sales dropped. The company had confirmed that it would be changing some GameStop stores to try and get more customers in them, but it seems that several stores will just be closed.

The site GSClosing, which tracks all of the GameStop closures, confirmed that 55 stores in the United States are closing between December and January. The site, which isn't run by GameStop, said that there are 10 stores having closing sales in California, seven having closing sales in Florida, six having closing sales in New Jersey, and five having closing sales in New York. There are also closing sales at stores in 16 other states and six stores that have closed. One ThinkGeek store that has closed will be opening as a GameStop in January, but it's unclear how many will also be reopened.

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These store closures are part of GameStop's plan to close between 230 and 250 stores by the end of March 2020. GameStop hopes that closing these stores will save it money and that by changing things such as its PowerUp Rewards system and the way its stores look, fans will spend more money.

However, GameStop's plan may have hit a major issue as the company has also reported that its holidays sales had a major drop. The company revealed that its global sales dropped by 27.5% in the holiday quarter. It said that it did not expect its new console and game sales in November and December to drop so much.

George Sherman, GameStop CEO said that "We expected a challenging sales environment for the holiday season as our customers continue to delay purchases ahead of anticipated console launches in late 2020." GameStop has blamed its finances on the PS5 and the Xbox Series X before, saying that people aren't buying so many PS4 and Xbox One consoles because they are excited for the new consoles.

If that is why GameStop's sales have been dropping, and it does seem likely, then the company will have to try to get shareholders to believe that the release of the console's next holiday season will grow its sales again. Some have wondered if GameStop will run out of money in 2020, but if it can get those PS5 and Xbox Series X sales, it could be around for much longer.

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Source: GSClosing, MarketWatch