Remember all the ruckus involving GameStop stocks that basically put Wall Street to a grinding halt? Well, it helped bring back the aging brick-and-mortar video game retailer to life. And here's what they're doing with the proverbial second chance.
NEW YORK - NEW YORK - MARCH 23: People wait to cross the street in front of GameStop at 6th Avenue on March 23, 2021 in New York. GameStop stocks falls more than 10% after the video game store showing strong earnings but lower than expected.
In a world where video games are now mostly sold digitally, GameStop is now committing everything they can to shift to an e-commerce business model. In other words, they're finally going fully online, as reported by GameSpot.
As part of their efforts, the longtime video game retailer is opening a gargantuan 700,000 square-foot facility in the East Coast of the US.
Located in York, Pennsylvania, the facility will serve as a fulfillment center that will support GameStop's online needs. According to GMEdd, it will be operational sttarting Q4 2021, and will be the main hub for GameStop's business efforts across the Eastern Seaboard.
Read also: GameStop Cashes In With $1B Share Sale Program For The Public-Will It Finally Happen?
An Increasingly Online Market
Everybody in the world knows that the COVID-19 pandemic has affected almost every single facet of life. This includes entertainment and shopping, and by extension, video games.
GameStop was basically going out of business and when the pandemic hit, and things were supposed to get worse--because in a pandemic where traveling is strictly monitored, how else are you going to get customers to walk into a brick-and-mortar store?
A middle-aged woman in white jeans and a yellow sweater sitting on the bed in a yoga pose in front of a laptop and a cup of coffee. Remote work at home. Online shopping in quarantine period
This is where things changed, and for the better.
Aside from all that stock investing fiasco earlier in the year, the company also had a new chairman: Ryan Cohen, who had a keen eye for e-commerce. Cohen was among the people who wanted GameStop online. He also looked for opportunities to sell even more diverse products than just video games, which is why you'll see PC components and game consoles in their stores these days, among others.
As a result, the company's online sales revenues went up a massive 191% this year, as noted by GamesIndustry.biz.
A Very Welcome Change, Indeed
GameStop's decision to convert to a fully online business is a very welcome change. And this is not just due to the pandemic causing travel restrictions to be levied left and right. If you look into the future, the decision makes even more sense.
UKRAINE - 2021/05/03: In this photo illustration, GameStop Corporation logo seen displayed on a smartphone with the stock market information of GameStop Corporation in the background.
When COVID-19 gets eradicated, there's a good chance that e-commerce sales numbers will still be as massive as they are today.
People, now wary of germs and being sick, will likely stick to shopping from the comfort of their homes. That 700,000 square-foot facility? It will be more than enough to consistently satisfy demand for years to come. Plus, with tools such as Google to help drive e-commerce revenue, GameStop is in a really good place for the foreseeable future.
Fortunately, the company isn't going at this alone.
Cohen's experience and expertise in e-commerce is already a boon, but they didn't stop there. GameStop actually brought on board a handful of former Amazon executives, all with the main goal of helping transform the former physical retailer into a fully online entity.
Read also: GameStop To Offer A Week-Long Star Wars Sale
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Written by RJ Pierce
