In the dynamic and digitally connected world today, consumers value convenience and service more than ever before. Instead of being brand conscious, they scope for companies that deliver a valuable consumer experience. The convenience of receiving comparable or superior pricing and greater variety from the comfort of their home has transformed consumer choices. This has posed an enormous challenge for specialty video game retailers, who historically gained from consumer loyalty. E-commerce retailers, who can circumvent rising rental costs and manage a fluid inventory system, have achieved operational efficiency and thus proliferated across the global spectrum. Additionally, as consumers value shopping at one marketplace for all their household …show more content…
The Technology Brands channel, including authorized Apple reseller Simply Mac, has seen substantial growth in 2016 as a result of the acquisition of 507 Spring Mobile stores. This further established their presence in the mobile market. Technology Brand sales increased 52.4% in 2016. However, GameStop’s aggressive acquisition efforts inflate this figure; therefore, the growth of this channel is expected to stabilize. Instead of diversifying its product offerings and attempting to enter new markets, GameStop should revert to the roots of their success.To establish themselves as a dominant presence, they should facilitate new revenue channels, and make strategic changes to their retail …show more content…
This is possible by the development of a social-centric retail experience to engage the consumer. The introduction of Pokemon GO and Super Mario Run display that there is potential in financializing consumers’ nostalgia. This can be recreated in GameStop locations by designing a social arcade, featuring a balance of classic titles, best sellers and new releases. Instead of brick-and-mortar stores that merely exhibit new releases and second hand games, this will create a personable and experiential experience in which enthusiastic consumers can create memories. With rising rental costs leading to operational inefficiencies, consumer engagement is the best long term strategy for GameStop, as it is an experience that Amazon, Steam or Walmart can never