Gamestop Business Analysis

In my mystery shop I went to the largest U.S player in retail sector specializing in video game and PC entertainment software. It ranks top five for the broader toy retailing sector. GameStop has stores in the United States, District of Columbia, Puerto Rico, and Ireland. It was founded in 1983 and was originally named Babbage’s the name was changed to GameStop in 2001. GameStop is a public company with 20,000 employees.

Almost two-thirds of the stores are located in strip shopping centers. They also have a gaming website where you can purchase it online and pick it up at the store and they don’t have a lot of complaints on their websites. But before I tell you why I choose this mystery shop let me give you some background information on

Just a year later in 1987 Babbage’s added another 35 stores and then began selling software for the eight-bit Nintendo entertainment system with 16 color graphics. That year the company earned $1.16 million on sales of $29 million. In 1988 Baggage’s took its software store public, offering 30 percent of the company’s equity for 20 million, or $13 a share.

But after having a good year in 1988 in 1989 Babbage’s began losing business because of severe allocations of video games. They were hit by a string of losses in the first 3 quarters of the year, the company responded by lowering prices on leading computer software titles and adding new video games.

Just a few years later in 1993 Babbage’s opened 56 new stores, however the company only generated 12% increase in sales, but and since 1989 increased revenues didn’t translate into bigger earnings for the company. In 1994 just one year later the company had 300 stores and plans to open between 30 and 40 more stores that year. As a result of holiday season price lowering Babbage’s stores had significantly lowered their inventory. Because of their lowered inventory the company was in a stronger financial position, however as it had no long term debt and maintained a cash surplus of $10.5 million. Plus this is just some of the things that GameStop did to be the major multi-million dollar company it is today. (Penderson, Funding Universe)

Then she asked if that was all I wanted to purchase. After that I purchased the games, then she said I hope you come back and then I walk out the store.

So after I purchased the games and walked out, I walked around the mall for like 30 minutes and went back in the store to return both of the games. I walked back in the store and she said welcome back and we walked to the cash register and I said. I would like to return these 2 games they were very nice took the games and gave me all of my money back. After that I walk away from the store and sat down in the food court and did the evaluation sheet.

While I was in the store all the employees did a great job at focusing on the customer that was in front of them and they didn’t do anything distracting. While I was talking to the employee she kept eye contact and she was dressed appropriately and had no jewelry and her hair was in the appropriate