NEW YORK (Reuters Breakingviews) – CLICKS AND BRICKS. GameStop, the $12 billion company buoyed by Reddit fans, plans to elect Chewy co-founder Ryan Cohen to chairman. He may help steer the brick-and-mortar retailer to an e-commerce future, even if such transitions can be fraught.
Cohen wants to turn GameStop into the “Chewy of gaming” with better prices, according to Reuters. Downsizing some 5,000 retail outlets across the globe is in the cards though the plan is to use remaining stores for distribution, allowing customers to shop online and pick up in stores, for instance. It’s the playbook for many retailers including Macy’s and Target.
It doesn’t always go smoothly. Take Chewy competitor Petco Health and Wellness, which has about 1,500 locations and is emphasizing online sales too. Fourth-quarter revenue rose 16% year-over-year to $1.3 billion but Chewy did better, increasing sales 51% in the same quarter to $2 billion. Gaming e-commerce is not a sure shot. (By Jennifer Saba)
Reuters Breakingviews is the world’s leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.