GameStop looks to tech, not games, to expand
The company plans to open between 300 to 400 stores in the next year that will sell Apple products and mobile devices.
GameStop might generate the vast majority of its revenue from gaming, but the company is looking to expand rapidly in tech.
Speaking during a conference call after releasing fourth-quarter earnings on Thursday, GameStop said that its Technology Brands division -- which includes all of the company's Simply Mac, Spring Mobile, and Aio Wireless stores -- will expand by 300 to 400 stores in the next 12 months. Some of the stores will be new premises opened as part of the company's growth strategy, while others will join GameStop's Technology Brands through acquisitions.
GameStop currently operates about 200 stores across the US that sell Apple products and mobile devices with AT&T. The division generates about $63 million in annual revenue to GameStop's financials. GameStop generated $3.7 billion in revenue last fiscal year.
Speaking during his company's earnings call on Thursday, GameStop CEO Paul Raines said that he has discovered that Apple and AT&T "really need better and more sophisticated distribution," adding that he believes his company can offer that.
While GameStop is expanding its technology footprint, its reducing its gaming footprint. During the company's last fiscal year, it reduced game store count by 2 percent, and plans to do the same in the next 12 months.
GameStop shares are up 4 percent to $38.80 on Friday.