Sumary of Flush from Reddit rally, GameStop plots store revival:
- A GameStop store is seen in the Jackson Heights neighborhood of New York City, New York, U.S. January 27, 2021. REUTERS/Nick ZieminskiGameStop’s new chairman more bullish on storesStores lost out to e-commerce platformsSome industry veterans doubtful about revampJuly 22 (Reuters) – When GameStop Corp (GME.
- N) shares surged by more than 2,500% in January, some customers joked to store staff they should thank the investors who fueled the video game retailer’s extraordinary rally for their paychecks.
- The 19 year-old high-school graduate told Reuters that, like many GameStop store employees, she worked part-time without healthcare benefits and earned barely more than the minimum wage – $7.50 per hour in Virginia, where she was based at the time.
- The COVID-19 pandemic hit GameStop, like other retailers, hard, as all non-essential stores were closed in March 2020 and reopened selectively months later.
- Little of that windfall has made its way to its run-down stores that have been losing customers to e-commerce platforms, such as Amazon.
- GameStop’s largest shareholder, Ryan Cohen, joined its board in January and became chairman last month with a plan to revive stores and boost online sales.
- The previously unreported plans for GameStop’s stores will run in tandem with the company’s push into e-commerce, they said.
- He is seeking to repeat his success with online pet supplies retailer Chewy, which he sold to PetSmart for $3.35 billion in 2017. He wants to turn GameStop into a gaming and entertainment retailer or the “Chewy of gaming”, with lower prices, better selection and faster delivery times on online orders than its rivals.