Blockbuster To Close 282 Stores

The AP is reporting that Blockbuster will be closing 282 stores nationwide and will beef up spending on its online DVD rental service in order to compete with industry-leader Netflix. From the AP:

“Traffic is just not what it used to be when Blockbuster was the big rooster in the hen house,” said Andy Cross, senior analyst with The Motley Fool.

In 2006, Blockbuster closed 290 U.S. stores and transferred a quarter of the revenue from closed stores to surrounding stores, the company said. It expects similar benefits to surrounding stores from the anticipated closures this year.

The company is aggressively seeking a new approach after years of ignoring Netflix, Cross said.

“They don’t make any money on the online business, which is a smaller part of their current business, and they’re not going to make any money on that, definitely not this year,” Cross said. “I personally think they will continue to struggle.”

Hmm, Where do they stock the used XBOX 360 games?

Blockbuster Closing 282 US Stores [Forbes]