Video Game retailer GameStop (NYSE:GME) is closing all of its stores in Puerto Rico. According to GameSpot the closings are due to “ongoing business challenges and increased governmental restraints.” A GameStop representative confirmed to GameSpot that the island’s nearly three-dozen stores will close by the end of March 2016.
A GameStop representative told GameSpot that “Given the ongoing business challenges and increased governmental restrains we have experienced in Puerto Rico, GameStop has made the business decision to close all if its video game stores and operations located on the island. As a result, GameStop will be exiting the Puerto Rican market by the end of March 2016. Until that time, we will continue to conduct normal business operations.”
The GameStop website shows that they operate 35 stores in Puerto Rico. In November GameStop had announced their financial results which was lower than they expected. GameStop reported that their total global sales fell 3.6 percent to $2 billion, while profit was 55.9 million. In 2015, their hardware sales dropped 20.4 percent and their software sakes fell 9.3 percent.
According to the website MFI (Money Flow Index) the GameStop Corporation has dropped 30.08% in the last 3 months leaving their stock performance at -13.97%.
Although their global sales had decreased, their pre-owned sales rose by 0.6 percent along with digital sales rising to 8.7 percent. This shows that people prefer to buy their video games online rather than in store.