Now the gaming retailer is working to turn things around: Along with the earnings report, it outlined changes aimed at transforming itself into “a customer-obsessed technology company that delights gamers,” its CEO said Tuesday on a call with investors.
For the full year 2020, GameStop posted a net loss of more than $215 million.
One bright spot: The gaming retailer’s global e-commerce sales increased 175%, representing 34% of the company’s total net revenue during the quarter. During the same period last year, e-commerce made up just 12% of total sales.
That bodes well for the company’s effort to transition to relying more on online sales, a move that’s especially important given that it closed a net 693 stores during 2020. It now has 4,816 stores globally.
“Our emphasis in 2021 will be on improving our e-commerce and customer experience, increasing our speed of delivery, providing superior customer service and expanding our catalogue,” CEO George Sherman said in a statement.
The company’s stock initially jumped more than 5% in after-hours trading immediately following the release, before reversing to fall more than 10%. And while corporate earnings calls are typically dry events attended mostly by analysts and reporters, GameStop’s Tuesday call hit max capacity and stopped allowing in additional listeners more than an hour before it began.
GameStop’s plan for the future
Neda Pacifico, formerly Chewy’s vice president of e-commerce, will become GameStop’s new senior vice president of e-commerce. And Ken Suzuki, former vice president of supply chain technology at online store Zulily, was hired as GameStop’s vice president of supply chain systems.
GameStop provided no financial guidance for 2021. But Sherman used Tuesday’s call to detail a number of other strategic initiatives aimed at turning the business around in 2021.
Among those efforts is a plan to establish a US-based “customer care operation,” the CEO said on the call. “We are focused on providing exceptional customer service levels across all channels regardless of where, when or how our customers shop with us,” he said. “We are accomplishing this with a technology-driven approach, along with our streamlined retail footprint.”
GameStop is also looking to expand its product offerings beyond video games and consoles by adding PC gaming products, computers, monitors, mobile gaming and gaming TVs. Such product offerings could expand the company’s addressable market by “over five times,” Sherman said.