GameStop has outlined its long-term goals, which include more than just selling video games. In its most recent financial statement, the store stated that it is taking measures to develop into a more broad technology firm.
Anyone who has visited a GameStop shop or visited the retailer’s website in the last several years knows that the real and virtual shelves are stocked with non-gaming things such as Funko Pops, clothes, general stuff, gadgets, and other items that aren’t directly related to gaming.
Nonetheless, GameStop is now stating unequivocally that it no longer wishes to be seen as primarily a video game retailer.
“GameStop has two long-term objectives: satisfying consumers and maximizing shareholder value. We’re transitioning from a video game shop to a technology firm that links customers to games, entertainment, and a diverse range of items “In a filing with the Securities and Exchange Commission (via Yahoo! Finance), the retailer stated. “We’re focused on providing a wide product variety, competitive price, and quick shipping—all backed up by high-touch customer care and a seamless online and in-store experience.”
GameStop’s objective is to expand its addressable market by “expanding [its] product library” in areas such as consumer electronics, collectibles, toys, and “other categories” that make sense for the company. To assist speed up delivery, GameStop is aiming to expand its fulfillment operations. To support this ambition, it just constructed a large plant in Pennsylvania and will open another in Nevada next year.
Furthermore, GameStop plans to enhance its technological skills by “investing in new systems, upgraded e-commerce assets, and a larger, experienced personnel base,” according to the company. The firm also stated that it intends to strengthen its bespoke service skills in the United States.
For years, GameStop has been expanding its business outside gaming. It used to be a major participant in the mobile phone industry, thanks to its subsidiary Spring Mobile, which it sold for $700 million in 2018. In 2019, GameStop also sold its Simply Mac subsidiary.
GameStop has recently made news for its “meme stock” saga. Members of the WallStreetBets subreddit acquired stock as part of a short squeeze earlier this year, propelling the stock price to unprecedented heights. The stock now trades at over $200 per share, up from roughly $5 per share this time last year.
With billionaire investor Ryan Cohen gathering a team of former Amazon executives and other important figures from the technology industry to manage GameStop, the company’s leadership team has also changed dramatically.
GameStop lost $63 million in the most recent quarter, although this was a significant improvement over the larger losses it had during the same period the previous year. Despite the fact that GameStop is losing money, the firm is generating more revenue than before.