GameStop Converts Over 200 Stores To Become 50% Collectibles, Amazing Game Sale Turnout
GameStop, the United States’ largest dedicated video game retailer, has had quite a roller coaster of a year. The year started off with reports of weaker 2016 holiday sales, which led to 150 stores being closed down. With similar stories of reduced sales and store closings happening across many U.S. retailers, GameStop has opted to make changes in hopes of long-term growth. The biggest change GameStop patrons have probably noticed is the increased presence of pop culture collectibles, especially with the acquisition of ThinkGeek. Now, it seems the strategy might be paying off, especially with 200 GameStop stores that were changed to hold 50% collectibles and 50% video games.
GameStop recently held their third quarter earnings report. The call recognized the increased sales across all sectors of the store’s usual product offerings, including an 8.8% increase in hardware sales largely thanks to the Nintendo Switch and a 26.5% increase in collectibles sales. Anyone who has walked into a GameStop store recently is probably well aware of the greater share of floorspace now being occupied by pop culture collectibles, both of those under the ThinkGeek brand and outside. As GameStop Executive VP Mike Mauler claims in the earnings call, the increased presence of collectibles is for “the new type of customer that those products [collectibles] bring into the GameStop ecosystem.”
The most interesting aspect of this strategy comes in the form of 200 GameStop stores that the company specially restructured to hold 50% collectibles and 50% video games on the shore shelving space. Despite this decrease in each store’s space made available for video games, these stores actually saw increased video game sales increase, thanks to the new customers that these collectibles brought into the store. Interim CEO Dan Matteo says the company will further increase this strategy, saying it will “drive further growth in collectibles by capturing more market share.” It seems that more collectibles might be the key to keeping GameStop afloat and giving it an extra life in the declining U.S. retail industry. What do you guys think about these 200 GameStop stores seeing increase game sales? Let us know in the comments below!
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Cory Lara2137 Posts
A royally radical and totally tubular 90s kid, Cory has a passion for all things nerdy, particularly gaming and nostalgia. While an accountant by day, he strives to be as creative and humorous as possible in his free time, be it here writing on Don't Feed the Gamers, or making dumb satirical posts on his Twitter, Youtube, Facebook and Instagram accounts.