Support NeoGAF

[Jooxed]

Ryan Cohen Maps Out GameStop Turnaround Plan

(Bloomberg) -- Perhaps no one, not even the day-trading hero they call Roaring Kitty, is more responsible for the improbable 700% rally in GameStop Corp. this year than Ryan Cohen.At 35 years old, Cohen is a billionaire entrepreneur with a reputation for a Midas touch after building the...

finance.yahoo.com

Part of that involves closing locations, especially poor-performing ones, a process that began well before Cohen came on the scene. Sherman, a veteran of retailers such as Advance Auto Parts Inc. and Best Buy Co., has shuttered hundreds of GameStop stores since he took the helm in April 2019 — a process the company calls “de-densification.”

Fortunately, GameStop isn’t locked into many long-term leases. The majority of them expire within the next two years, giving the company flexibility to walk away from poor-performing locations.

Still, GameStop can’t shrink its way into prosperity. The hope is to actually sell a bigger range of products, but do more of it online, while efficiently using the stores that remain.

Cohen also looks to tap the culture and ideas cultivated by Chewy, which he sold to PetSmart and a British private-equity firm in 2017 for $3.35 billion. Exceptional customer service is one of them. Wide product selection is another.

There also are parallels between pet owners and gamers that Cohen can draw on. Their purchases aren’t merely transactional. Both sets of customers tend to be deeply emotionally invested in what they buy. And there’s a strong element of community around pets and video games. Customers tend to treat employees as experts, helping them select the right pet food or game.

 

[James Sawyer Ford]

Sounds like garbage

 

[EverydayBeast]

When it comes to GameStop’s business model it’s about games first. It’s no where near where it use to be, it’s culture now is collectibles, and angry people not getting next gen consoles.

 

[SlimySnake]

Better customer service is a good start. I think bestbuy's success proves that brick and mortar stores are here to stay. BB did invest a lot in its online shopping, but they did not gut their stores to do so. I love going to Bestbuy, but i do not care to go to cramped Gamestops with pushy employees.

The console and PC markets are stronger than ever. Gamestop needs to work with manufacturers to get those consoles and GPUs in their stores asap. Selling video games should no longer be the priority. They need to become a hardware seller like Bestbuy if they want to survive. There is a no place to resell GPUs without risking getting scammed on eBay. They should've slotted themselves in right there.

Good thing is that they haven't missed the boat. PC GPUs are sold out all the time. They can start working with manufacturers to get shipments to their store on a regular basis and see their business boom. I gave up on Microcenter because they are too far away, and too big. But I can talk to my local Gamestop guys and get a better understanding of shipments.

 

[StreetsofBeige]

There's a mall near my work where they used to have TWO stores. They got rid of one of them years ago, but as a start EB management can look into seeing if that situation still exists elsewhere. It wasnt even a big mall. Crazy.

EB is caught in a taught spot because games are shifting online and two of the most pissy things I'm sure most gamers don't like about EB are:

- Aggressive sales clerks
- The store being taken over by Funko and board games and random trinkets

It might as well turn into a Spencers Gift store at some point.

Better customer service is a good start. I think bestbuy's success proves that brick and mortar stores are here to stay. BB did invest a lot in its online shopping, but they did not gut their stores to do so. I love going to Bestbuy, but i do not care to go to cramped Gamestops with pushy employees.

The console and PC markets are stronger than ever. Gamestop needs to work with manufacturers to get those consoles and GPUs in their stores asap. Selling video games should no longer be the priority. They need to become a hardware seller like Bestbuy if they want to survive. There is a no place to resell GPUs without risking getting scammed on eBay. They should've slotted themselves in right there.

Good thing is that they haven't missed the boat. PC GPUs are sold out all the time. They can start working with manufacturers to get shipments to their store on a regular basis and see their business boom. I gave up on Microcenter because they are too far away, and too big. But I can talk to my local Gamestop guys and get a better understanding of shipments.

No PC games is understandable as everything is digital and theres no more boxed copies, but EB should had rode the wave of PC parts, headsets, gaming keyboards and whatever other high margin stuff out there. Best of all is they have stores so people can actually see them and even see demo items.

I dont think EB ever gunned for that.

I know Best Buy stores are bigger so they got more room for stuff, but they are still a general electronics store selling everything from a fridge to TV to gaming, but theres no way a big mass store selling that stuff should have more space and a better selection of gaming head sets than an EB store.

Walk into a BB and the console section has tons of peripherals. And then there's more when you walk to the PC section. Go to an EB and they got a small wall of that stuff. Should be the other way around.

 

[fart town usa]

I hope mine doesn't close, it's literally the only game store for hours. I support them as best I can but their used game selection for Wii U is paltry, lol.

 

[Antwix]

Gamestop's online site/system is atrocious and I think they need to fix that first if they're going to gain any ground. Out of all the online store-fronts I've used in my life, Gamestop is probably in the bottom 5% in my opinion. I always hear about people receiving cases with no disc/cart, badly damaged products, and crazy slow processing, all of which I've experienced myself. Not to mention their site often has advertised sales that don't actually work.

"Customers tend to treat employees as experts." Right... I traded in my X1S all digital to Gamestop a couple months ago and the dude accepted the trade as a Xbox Series S. So I guess I gotta deal with Gamestop for awhile longer while I use my credit.

 

[Nester99]

I can not think of a single reason i would order a new game/accessory/console from GameStop online vs Amazon, Walmart or BestBuy.

I loved eb games (canada) and traded almost all my games in and bought a lot of used.. 5 days after PS5 launch, they closed my local down.


Without used games in and out. I have no need for GameStop. Its a shame, i liked the people who worked there.

 

[AgentP]

I thought their plan was to send me three emails a day on sales which were either pop figures or $200 toys. Sometimes 50% off used games.

 

[WalterSobchak]

They need to have reasonable shipping costs or probably free shipping on $30 or $35. Definitely need way better customer service. Not sure about selling a wider range of products. Hopefully they become a decent place to buy games from.

 

[Aroll]

I like the basic ideas here.

1. Pivot aggressively to the online marketplace by offering a much wider range of gaming related products.
2. Close all stores in the next 2 years when leases end that do not perform well and are just sunk costs. That's just normal for any business to close stores that lose money.
3. Focus hard on creating a 5 star customer service experience, both in-person in the remaining stores, or online through chat and calls. No more minutes long automated voice bs, 15+ minute waiting times, to get someone who doesn't speak your native language well in another country. Chewy, as someone who did use it a couple times, had some of the best customer service I have ever seen anywhere. This is a pivotal approach that fundamentally changes the game, considering one of the reasons GameStop has such a bad reputation among gamers these days is their dogshit customer service and focus on "attaching warranties and other BS" onto every purchase. Let alone price competitiveness for when they buy used products - amazon will pay you more for trade-in's than GameStop. If they want to offer a wider range of products, especially retro, they need to get price competitive with the market.
4. Possibly convert some stores into a eSports training place. I kind of liken this idea to basically being like some gaming centric internet cafes. I could work, maybe.

Overall, I think it's a solid plan depending on how they expand and improve their online experience. I like the idea of a gaming focused amazon like experience with top tier customer service. It's also nice because after all that Wall Streets Bets stuff, GameStop actually got to wipe their debt slate completely clean which really buys them a ton of time to get this right. What looked like a "GameStop is done in 2 years" now, they basically have as many years as they need honestly. The only thing over them was debt they had a hard time paying back due to not posting a profit. But that's done now.

 

[Ten_Fold]

I think it won’t hurt if they started selling new/used GPU, add a retro game section that people can buy/sell. Better customer service, I don’t want no membership or credit card.

Stores that perform well and have enough space should start hosting local tournaments for fighters,shooters or whatever.

Making the online experience much better is needed, but I think they have good game plans, they just need to get it going. I want to shop at GameStop again, but man I’m just not a fan of the experience nowadays.

 

[Animagic]

Back when it was just Funcoland, the service was exceptional. They should really go back and see why it was so appreciated in its time.

 

[StreetsofBeige]

Back when it was just Funcoland, the service was exceptional. They should really go back and see why it was so appreciated in its time.

I remember when Electronics Boutique first came to Canada.

- For the first time ever, a dedicated game store that was pretty nice and in shopping malls. No more needing to go to grungy mom and pop stores with hit and miss attitude clerks and owners, or buying from an electronics store where their game section wasnt great
- Match lowest price (bring in an ad). I did it myself
- Lowest prices. Lower than mom and pop stores and good prices vs. Future Shop and Walmart
- I dont remember any upselling BS
- You could return the game within 10 days
- I dont remember if they did used games at the start. That might had come later

Then it changed.......

- Lots of small gaming stores got taken over by EB
- Increased prices
- No more price matching
- No more return policy
- Upselling whatever the fuck the clerk could think of at the cash register from $3 disc guarantees to GI magazine, to pre-orders
- When used game arrived, they were $5 cheaper than new..... then it got to $2-3 less than new sometimes

Bunch of assholes.

 

[*Nightwing]

As someone who worked as a manager throughout the time they merged together to become a corporate conglomerate ruining the reputation we had built at Electronics Boutique, Babbages & Funcoland this makes me sad and hurts my pettiness.

I have been patiently waiting for the death of the Gamestop brand with unyielding loyalty and this is the first business plan they have had in the past 20 years that might actually save it. The physical stores dying is not enough for me, I want the entire name to burn to the ground and never resuscitate.

 

[BusierDonkey]

I remember when Electronics Boutique first came to Canada.

- For the first time ever, a dedicated game store that was pretty nice and in shopping malls. No more needing to go to grungy mom and pop stores with hit and miss attitude clerks and owners, or buying from an electronics store where their game section wasnt great
- Match lowest price (bring in an ad). I did it myself
- Lowest prices. Lower than mom and pop stores and good prices vs. Future Shop and Walmart
- I dont remember any upselling BS
- You could return the game within 10 days
- I dont remember if they did used games at the start. That might had come later

Then it changed.......

- Lots of small gaming stores got taken over by EB
- Increased prices
- No more price matching
- No more return policy
- Upselling whatever the fuck the clerk could think of at the cash register from $3 disc guarantees to GI magazine, to pre-orders
- When used game arrived, they were $5 cheaper than new..... then it got to $2-3 less than new sometimes

Bunch of assholes.

EB really shit the bed up here. They used to do organized events for big launches. They had legitimate staff who really seems to be the neckbeards they portrayed. Nowadays on the odd occasion I pop into the claustrophobia store I see a sea of plastic trash and people who give zero shits that clearly don't play any of the games in the store.

Luckily in my city we have a few local game stores to pick up the slack who I'd much rather give my money to anyways. Much better selection of both new and used games (most of them carry Limited Run games) and people that have a clue.

 

[FeldMonster]

Give me back Funcoland you cowards!

While I understand their comparison between gamers and pet owners, you can't digitize pet products (do Tamagotchis still exist?). Gaming is going digital and there is no turning back.

If they actually, truly, want to improve customer experience, they could start by not opening brand new games, putting weak paper stickers with strong adhesive on them, re-wrapping them, and then still selling them as new. Even better if they stop doing the same thing with used games as well.

 

[e&e]

Have a better rewards program. If you are charging people for a subscription, you should be making them get coupons and discounts Every. Single. Time. they are there! I work for a company that was awarded the best rewards program and it’s true because I can’t believe the discounts they give to customers and still hit their profits (and there is no paid rewards too)! Customers are stacking coupons and discounts and walking away with so much free stuff. Give discounts off your damn used selection every week! And stop training your teams to bully customers.

 

[Dream-Knife]

Isn't he getting a huge payment soon and then leaving?

Gamestop needs to:
1. Hire better people (pay them more)
2. Stop opening games and selling them as new
3. Don't harass people about preordering
4. Remove junk and clutter from stores
5. Focus more on retro gaming