With competitors like Netflix and Redbox, Blockbuster appears to have fallen behind this year. Blockbuster set out to close all of its unprofitable stores. Out of over 7,000 stores, a shocking 18% were proven unprofitable. Their plan was to "improve four-wall profitability," and in order to achieve this goal, these stores had to be closed.
Blockbuster intends to close up to 960 stores by the end of next year, according to a Securities and Exchange Commission filing. This is in an attempt to make the company more financially stable. Even before this information was discovered, Blockbuster was planning "normal closures," which included anywhere between 280-300 locations. Also, an expected 300 or so stores will be considered "accelerated closures."
Next year looks a lot less gloomy for this chain, expecting to close only 100-125 locations that will be normal closures, and 130-150 that will be accelerated closures, according to the company's SEC filing. But overall, between 810-960 stores will be closed by the end of 2010.