Can GameStop rebound? A new “Consumer Innovation” push suggests yes
Everyone has heard of GameStop at this point in their lives, good or bad, every gamer has a story about the gargantuan retail chain. And it seems more and more likely as time goes on that those stories have trended towards the negative. GameStop has been struggling for the last several years as retail sales in general decline. But this trend of downward revenue certainly isn’t helped by many feeling GsmeStop to be outdated, or worse, a predatory influence in gaming. And with their plummeting sales and stock value, things don’t look good. But they’re trying some new things to help out the bottom line.
The company has now announced a new partnership as part of an ongoing redevelopment plan to turn the trend around. this new partnership with consumer innovation firm R/GA aims to help the gaming retail outfit develop new strategies and brands that will bring the customers back. It’s been no secret that GameStop wants to develop a more cultural experience, as opposed to just a pure gaming retail store. A big part of this push is diversification of products, as well as offering unique services. According to the announcement, it looks like that element will focus on areas where GameStop has lagged behind current gaming trends.
GameStop plans to develop stores offering competitive play and “home-grown e-Leagues,” along with specialized outlets focusing entirely on retro gaming and culture. So if this plan is successful, we could well see a new branch within the company form. But it’s impossible to deny the reality of the tough situation this company faces.
The retail outlet had previously tried other innovations, like a rental program, which failed quickly. The company also apparently sought a buyout at one point due to insane outstanding debt, but found little interest.
So while turning toward a brand focused on delivering more forward-thinking services as part of getting customers in the door is nothing new, GameStop wants to push in multiple directions at once and help revitalize their struggling name. It’s possible that a strong push in areas lacking a strong gaming retail presence could help here, but that will likely come at the closure of stores in some areas. Personally I live within easy driving distance of three different GameStop stores, it’s likely that one or more of these would close or transform into a retro outlet if this change comes to pass. We will just have to wait and see what happens.
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