What would gamers think if GameStop closed its doors? Would they be upset? Thousands of people would stop by GameStop to buy the latest game. It would also mean that they would be deprived of the convenience of online gaming. Big box stores offer only a handful of games, so gamers will be left without a good selection of new releases. Fortunately, there are several ways that GameStop could continue to attract customers and make its store better than ever.
First, GameStop should move its core competency of buying and selling used games online. Similar to the way sneakerheads buy pre-owned sneakers, GameStop should shift its focus to e-commerce. It should sell new disk-games online, except for a few big-release titles. Another option would be to establish a gaming club with members. GameStop coupons no longer work for digital goods, so this move would help the store minimize its losses.
Another problem that GameStop faces is declining sales. In the most recent quarter, GameStop reported a $19 million loss, with sales declining 30 percent on average. The video game industry has seen record highs over the past decade, thanks in part to the pandemic. But the company’s financial situation has been in decline for several quarters now and has seen five different chief executives since 2017. The current CEO, George Sherman, took over the company in April 2019.