Video gaming retailer GameStop, faced with lower sales in the gaming segment of their business, said on Thursday that it will open more stores in its Technology Brands segment. That segment includes Simply Mac, GameStop’s chain of Authorized Apple Reseller locations.
GameStop plans to convert as many as 100 of its stores to its Technology Brands segment in 2015. They will also close about 3 percent of their GameStop locations. The company operates over 6,600 stores in 14 countries.
GameStop announced their plans on Thursday, as part of their financial results for the fourth quarter of 2014. The company announced disappointing results, and said it also expects a weak first quarter in 2015.
GameStop reported an 11 percent increase in profit for the fourth quarter over the previous year, as sales declined by 5.6 percent.
While same-store sales for the quarter declined 1.8 percent, including a 1.4 percent decline in the U.S. and a 2.6 percent decline internationally, the firm reported encouraging results for its Technology Brand segment, which contributed 5 percent to the company’s operating income, and to its gross margin of 29.9 percent in fiscal 2014, aided by an expansion of the company’s AT&T wireless and Apple retail businesses.
The Technology Brands segment includes Simply Mac, Spring Mobile and Cricket Wireless stores.
Simply Mac is a chain of over 60 stores that sell a full range of Apple products, including Macs, iPhone, iPad, and accessories, also offering Apple certified warranty and repair services. The Simply Mac chain has been growing of late, acquiring MacAuthority and PeachMac stores in the southern part of the United States, as well as Northwestern U.S. chain, The Mac Store.
Spring Mobile sells post-paid AT&T Wireless products and services through 361 AT&T branded stores, while Cricket Wireless operates 63 stores in select markets throughout the U.S.
