GameStop's revenue in the fourth quarter of the United States fell, but e-commerce sales soared 175%

GameStop's revenue in the fourth quarter of the United States fell, but e-commerce sales soared 175%

American game retailer GameStop recently released its fourth-quarter 2020 financial report , showing a decline in overall net sales , but a 175% increase in global e-commerce sales .

GameStop is an American seller of video games, consumer electronics and wireless services . Affected by the COVID-19 pandemic, GameStop suffered a net loss of more than $215 million in 2020.

GameStop has been struggling with declining sales as mobile gaming grows in popularity and people start downloading video games to their PCs and consoles . Consumers have increased their reliance on online commerce due to the pandemic , forcing retailers like GameStop to temporarily close stores.

The company said it closed 693 stores in 2020 in response to the COVID-19 pandemic and shifted sales to online platforms , "strategically reducing store density."

Meanwhile, GameStop's fourth-quarter report showed that its global e-commerce sales grew 175%, accounting for 34% of the company's total net revenue in the quarter. In the same period last year, e-commerce accounted for only 12% of total sales.

GameStop CEO   " ( GameStop) is going to be a technology company that delights its customers and delights its gamers, " George Sherman said on a March 23 call with investors . The gaming retailer is working to shift direction and grow its e-commerce business , relying more on online sales .   .

"Our focus in 2021 will be on improving our e-commerce and customer experience , increasing delivery speeds , providing excellent customer service, and expanding our product catalog, " Sherman said in a statement.

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 products could expand the company's addressable market "more than five times," Sherman said.

Since the spread of the epidemic, offline businesses in many industries have been impacted, but online shopping has developed rapidly. More and more companies have begun to invest in e-commerce in pursuit of new economic growth, which has also indirectly promoted the development of e-commerce.

Online Shopping

E-commerce

USA