GameStop has revealed plans to shutter more stores across the United States.

According to the Daily Mail, the decision follows the closure of nearly 300 locations last year and comes as the company grapples with a steep 20 percent drop in net sales, now totaling $860 million compared to $1.08 billion in 2023.

Despite generating revenue, GameStop’s operations continue to struggle. “GameStop has virtually no chance of returning to profitability in its core business,” analysts said, according to Morningstar. 

Daily Mail reports that in a recent filing with the Securities and Exchange Commission, GameStop said it is conducting a comprehensive store optimization review and has yet to finalize which specific locations will close. However, the company warned that closures could exceed the numbers seen in previous years, meaning hundreds will likely shut down.

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Founded in 1984, the popular retail chain has faced mounting challenges as the gaming industry shifts toward digital downloads, streaming and online shopping, leaving physical game sales in decline.

As of 2024, GameStop has just over 4,000 active locations in the U.S., but the U.S. isn’t the only country in which GameStop has run into issues.

The company plans to shut down operations in Germany, as well as scale back in Italy. In 2023, GameStop shut down all its stores in Ireland, Austria and Switzerland.

The retailer’s struggles are part of a broader closure spree affecting the U.S. economy. Nearly 2,600 stores closed in the first four months of 2024, with projections suggesting that up to 8,000 could shut their doors by year’s end, the Daily Mail reports.

Other major retailers, including Walgreens, Big Lots, Party City and Advance Auto have also announced significant closures.