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GameStop and the Retail Store

GameStop - Reinventing the Retail Model

GameStop and other publicly traded stocks like AMC Theaters, Bed Bath & Beyond, BlackBerry, Koss, Nokia, and Tootsie Roll have seen huge run-ups in values due to speculation by investors. To be clear, this isn’t actual investing; it’s a form of gambling that the stock price will go up or down immediately, based on what other investors do, not whether the underlying business is a good bet.

Of course, business is always a gamble: Will people buy what I want to sell? Can I make a profit? Can I compete successfully? There are no guarantees in stock investing nor the businesses people invest in.

Shifting Focus

Gaming has shifted to downloadable content and online means, as physical gaming consoles and stores are no longer needed for players to connect with the latest games. GameStop, in it's prior and current iterations, may need to reinvent themselves. They could shift from selling video games – a dying business – and consoles to providing an attractive physical venue for serious gamers to congregate with the latest consoles, biggest screens, plushest seats, best refreshments, and the camaraderie of fellow gamers. Naturally, both Covid and online gaming work against that concept right now but they’re doing what many retailers are: looking for a sustainable, profitable path forward.

No one knows what stores will survive and how they’ll do it. Kudos to GameStop for creatively exploring new ways to attract and serve customers. Everyone knows, however, that the music will eventually stop for speculators in their stock and some people will be left without a seat. We’re pulling for GameStop to find a new retail model that works for them, their clientele, and their non-speculative investors.