GameStop made the news recently for announcing a second wave of PS5 pre-orders will be taking place online and in-store at the retailer tomorrow, but it wasn’t that long ago that GameStop was doing very poorly in terms of earnings and market shares. Although many video game producers and developers have enjoyed success during the pandemic due to the higher volume of gamers in lockdown, a large portion of GameStop’s business model relies on in-store shopping, and COVID hurt it very badly.
Enter Ryan Cohen, co-founder of a pet supplies retailer called Chewy.com, who bought an almost 10% share in GameStop and is taking his big plan to the board and GameStop directors. His plan is to become an even bigger part of GameStop’s operations and financial planning in order to expand the merchandise line and bring GameStop back from its Q2 losses.
It’s important to note that GameStop may very well decide not to implement Cohen’s ideas after he meets with the board and directors, but some people are saying that ignoring Cohen’s plan would be signing the retailer’s death warrant. After all, stocks didn’t start rising until Cohen revealed his plan, so the directors at least have the investors’ votes of confidence; still, people will have to see tuned to see what GameStop’s fate will be and what direction it goes.
Source: Bloomberg
