GameStop to focus on gaming-adjacent tech fields moving forward

Shawn Knight

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gamestop closing stores focusing mobile gamestop

It was only a matter of time before shifting market trends forced games retailer GameStop to modify its strategy. During a recent presentation at GameStop's 2014 Investor Day, CEO Paul Raines outlined a new strategy that will see the company focus less on games and more on gaming-adjacent tech fields.

Dubbed GameStop 3.0, the initiative will initially involve the wireless industry and the Apple ecosystem. Most don’t know that the gaming retailer is already active in the wireless industry as it owns AT&T specialist Spring Mobile in addition to operating several Cricket Wireless locations across the country.

In fact, GameStop is the third largest AT&T dealer in the US – who knew?

On that front, the company plans to open anywhere from 200 to 250 new Spring Mobile stores and another 100 to 150 Cricket locations within fiscal 2014.

GameStop will also add 20-25 new Simply Mac stores which specialize in Apple products. The new retail locations will join the 23 existing stores and will be built in markets that are currently underserved by Apple’s own retail chain.

At the same time, the company is closing a small amount of brick-and-mortar stores under the GameStop banner. In total, they plan to shutter between 120 and 130 of their nearly 6,500 locations – or about two percent of all stores.

The changes are expected to generate up to $425 million in additional sales during fiscal 2014 with all three business having the potential to be $1 billion businesses in the coming years, Raines said.

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The writing has been on the wall for at least the past 5 years. I'm surprised they've waited until now to start changing gears.
 
The killed all the other stores like themselves the last one was Media Something they were the last to get killed out! This company the only one around so I am sure they have other business ventures they own. Like this all over.
 
They're going after a market who's current leader is ready to be taken out, Best Buy. Gamestop has waited until market conditions were at a point where there will be little to no competition. Walmart will be around for the foreseeable future, but most tech savvy people don't buy electronics there. Best Buy's the only major electronics retailer left, but their financial situation, and business model, have pushed them to the edge.
 
They're going after a market who's current leader is ready to be taken out, Best Buy. Gamestop has waited until market conditions were at a point where there will be little to no competition. Walmart will be around for the foreseeable future, but most tech savvy people don't buy electronics there. Best Buy's the only major electronics retailer left, but their financial situation, and business model, have pushed them to the edge.
Your forgetting another major retailer, Fry's electronics which is probably my favorite store on the whole planet. Going inside one of those sets off the nerd inside me and its so fun to just be able to see such a vast assortment of motherboards, processors, GPU's, etc sitting all waiting there for me to examine.

In all honesty, Gamestop will have to start evolving as the used game market is starting to tone down a bit. They do not want to be caught with their pants down like Blockbuster was.
 
They're going after a market who's current leader is ready to be taken out, Best Buy. Gamestop has waited until market conditions were at a point where there will be little to no competition. Walmart will be around for the foreseeable future, but most tech savvy people don't buy electronics there. Best Buy's the only major electronics retailer left, but their financial situation, and business model, have pushed them to the edge.

I don't think it really sounds like they're going after best buy. Best Buy sells computers and TV's and the like too, Game Stop is moving into mobile, which more the gap that Radio Shack is leaving behind. Best Buy actually made money two out of the last 3 years, and while they're still a big victim of showrooming, I think they're doing OK. At least in my town, they're wiping the floor with HH Gregg, and poor circuit city.... remember them?

Best Buy however, does have the problem of sales people who have a reputation for being a little light on the product knowledge, so perhaps they plan on focusing on customer service. I wonder if Game Stop will be turning locations into mobile sellers that have a best buy mobile store near by. Or will they only modify stores where they are the only electronics spot in the mall?
 
I don't think it really sounds like they're going after best buy. Best Buy sells computers and TV's and the like too, Game Stop is moving into mobile, which more the gap that Radio Shack is leaving behind. Best Buy actually made money two out of the last 3 years, and while they're still a big victim of showrooming, I think they're doing OK. At least in my town, they're wiping the floor with HH Gregg, and poor circuit city.... remember them?

Best Buy however, does have the problem of sales people who have a reputation for being a little light on the product knowledge, so perhaps they plan on focusing on customer service. I wonder if Game Stop will be turning locations into mobile sellers that have a best buy mobile store near by. Or will they only modify stores where they are the only electronics spot in the mall?

Best Buy sells TVs, and a bunch of other things true, but they're only profitable in Appliance sales (a little bit,) and Best Buy Mobile (Phones/Tablets.) Their Mobile Dept is the only thing keeping them a float at the moment. If Gamestop snags that market the rest will crumble. I worked for the local store for about 10 years, and keep up with some friends that still work there. Thing's are getting bad internally. Many positions removed, and my team and myself were fired for being there so long we were all over salary cap after they suddenly decided to drop the cap from $25/hr to $13/hr.

I doubt Gamestop will get in to TVs and such, but probably some computer supplies. High margin gaming gear and monitors I can see being a thing.
 
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