GameStop intends to exit the Spanish market via the sale of retail locations to specialist video game retailer Game Digital Plc (GAME), in combination with closures of its remaining locations. Under the terms of this proposed agreement, GameStop will transfer ownership of a portfolio of GameStop stores located in Spain, with the remaining retail sites winding down this year.
GAME already has a consumer presence in the country, in addition to its retail operations in the UK. GameStop’s strategic decision to exit the Spanish market was made after a careful review of the market’s financial performance and future opportunities, which indicated that the company would be better served by curtailing its operations in Spain, and focusing its resources in other countries where GameStop has significant market share. GameStop expects to maintain and expand its presence in the other European countries in which it currently operates.
During the coming months, GameStop will work closely with GAME to ensure continued support for GameStop’s customers in Spain. The proposed deal will require Spanish Competition Authority approval, which is expected in October. Financial terms of the deal were not disclosed.