Connect with us


GameStop Pivots Back to Brick-and-Mortar

After its e-commerce push fell short of expectations, the videogame retailer is hitting the reset button




Photography: iStock

When Ryan Cohen took the reins at GameStop (Grapevine, Texas) in early 2021, his turnaround plan relied heavily on e-commerce. However, it became clear that wasn’t working last year, so Cohen has returned to an emphasis on bricks-and-mortar and cut e-commerce spending, according to LinkedIn News and The Wall Street Journal.

The company halted construction of warehouses for online orders, an e-commerce customer-service center was shuttered and hundreds of corporate jobs were cut.

Last week, those steps helped GameStop report its first profit in two years. While revenue dipped 1 percent, its stock jumped more than 40 percent on the news that the company was back in the black.

Even with a renewed emphasis on stores, the chain has a long way to go to reach its previous plateau in that category. According to a variety of published reports, GameStop currently operates a total of about 4400 stores, including just under 3000 in the U.S. As recently as 2017, the company operated a total of more than 7100 locales.



MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design

Promoted Headlines

Most Popular