GameStop Profile
GameStop Corp. (GameStop) offers games and entertainment products through its stores and ecommerce platforms.
Segments
The company operates through four geographic segments: United States, Canada, Australia, and Europe. Each segment consists primarily of retail operations, with the significant majority focused on games, entertainment products and technology. These products are substantially the same regardless of geographic location, with the primary differences in merchandise carried being the timing of the release of new products in the various segments. The company’s stores and ecommerce sites operate primarily under the names GameStop, EB Games and Micromania.
The company’s Australia and Europe segments also include 52 pop culture themed stores selling collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers in international markets operating under the Zing Pop Culture brand. The company’s brands also include its print and digital gaming publication, Game Informer magazine.
Merchandise
The company categorizes its sale of products as follows:
Hardware and Accessories: The company offers new and pre-owned gaming platforms from the major console and PC manufacturers. The current generation of consoles include the Sony PlayStation 5, Microsoft Xbox Series X and the Nintendo Switch. Accessories consist primarily of controllers, gaming headsets, and virtual reality products.
Software: The company offers new and pre-owned gaming software for current and certain prior generation consoles. The company also sells a wide variety of in-game digital currency, digital downloadable content and full-game downloads.
Collectibles: Collectibles consist of apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, and the company’s digital asset wallet and NFT marketplace activities.
Trade-In Program
The company provides its customers with an opportunity to trade-in their pre-owned gaming, mobility, and other products at its stores in exchange for cash or credit which can be applied towards the purchase of other products. The company’s trade-in program provides customers a means to unlock value and recycle used product, which enables it to offer previous generation platforms and related games. The company operates refurbishment centers in the United States, Canada, Australia and Europe, where used gaming, mobility and other products can be tested, repaired, sanitized, repackaged and redistributed for sale.
Store Locations
The company’s retail stores are generally located in strip centers, shopping malls and pedestrian areas. The company targets strip centers that are conveniently located, have a mass merchant or supermarket anchor tenant and have a high volume of customers.
Business Strategy
GameStop is on a strategic path to fully leverage its unique position and brand recognition in gaming through a new phase of transformation. The company’s strategic plan is designed to optimize its core business and achieve profitability in the near term, while pursuing strategic initiatives to generate long-term sustainable growth in the gaming and entertainment industries. The key elements of the company’s strategy are to establish omnichannel retail excellence; and leverage brand equity to support growth.
PowerUp Rewards
The company’s U.S. loyalty program, called PowerUp Rewards (PowerUp Rewards), had approximately 56.7 million members as of January 28, 2023. The PowerUp Rewards membership totals include 5.6 million paying pro members. The company’s loyalty program generally offers its customers the ability to sign up for a free or paid membership, the latter of which gives its customers access to exclusive gaming related rewards. The program's paid membership generally include a subscription to Game Informer magazine and additional discounts and benefits in its stores and ecommerce platforms.
Game Informer
The company publishes Game Informer, a leading gaming publication featuring reviews of new releases, previews of the big titles on the horizon, and coverage of the latest developments in the gaming industry. The magazine is available by subscription, in both digital and physical formats and is sold both online and in-store. Game Informer is a part of the PowerUp Rewards Pro loyalty program and is a key feature of each paid PowerUp Rewards Pro membership. Operating results from the English version of Game Informer are included in the United States segment and other international version results from Game Informer operations are included in the segment in which the sales are generated.
Vendors
The company’s largest vendors are Sony, Nintendo, and Microsoft, which collectively accounted for a majority of its new product purchases in fiscal 2022 (January 28, 2023).
Distribution and Information Management
The company’s operating strategy involves providing a convenient and broad merchandise selection for its customers. The company uses its distribution facilities, store locations and inventory management systems to optimize the efficiency of the flow of products to its stores and customers, enhance fulfillment efficiency and optimize in-stock and overall investment in inventory.
Competition
The company competes with mass merchants and regional chains, computer product and consumer electronics stores, other gaming and related specialty stores, toy retail chains, direct sales by software publishers, the online environments operated by Sony (PlayStation Network), Microsoft (XBox Live), Nintendo (Nintendo Switch Online), as well as other online retailers, game rental companies, and Web 3.0 platforms. Gaming products are also distributed through other methods such as digital delivery.
In the United States, the company competes with Walmart Stores, Inc. (Walmart), Target Corporation (Target), Best Buy Co., Inc. (Best Buy), and Amazon.com, Inc. (Amazon.com), among others. Throughout Europe the company competes with major consumer electronics retailers, such as FNAC-Darty and Media Markt-Saturn, major hypermarket chains like Carrefour and Auchan, and online retailer Amazon.com. Competitors in Canada include Walmart and Best Buy. In Australia, competitors include JB HiFi stores, Big W, Target, and Amazon.com. Globally, the company also competes with certain vendors including Sony, Nintendo, and Microsoft among others, for direct-to-consumer offerings.
Seasonality
The company’s business, like that of many retailers, is seasonal, with the major portion of sales and operating profit realized during the fourth quarter of the fiscal year, which includes the holiday selling season. During fiscal 2022, the company generated approximately 38% of its sales during the fourth quarter (year ended January 28, 2023).
Trademarks
The company has a number of trademarks and service marks, including GameStop, Game Informer, EB Games, EB Electronics Boutique, Power to the Players, and PowerUp Rewards, and PowerUp Rewards Pro, which are registered with the U.S. Patent and Trademark Office. For many of the company’s trademarks and service marks, including Micromania and Zing Pop Culture, it also has registered or have registrations pending with the trademark authorities throughout the world.
History
GameStop Corp. was founded in 1996. The company was incorporated in 2005.
