However, despite GameStop masks requirement to enter stores, employees cannot actually refuse service to customers without one. He said on a conference call this month that GameStop expects to close 400 to 450 stores this fiscal year -- a process the company calls “de-densification.” A little bit under 40% of lost sales from closed stores tend to go either to neighboring locations or online, Sherman said. [The recent run-up in its stock price] seems like a short squeeze and a desperate attempt to save the company.”, I ditched corporate America in 1994 and started a management consulting and venture capital firm (http://petercohan.com). Ryan Cohen, the entrepreneur who built Chewy.com into a pet-supply giant and sold it for more than $3 billion, is now pitching GameStop Corp. on a lofty goal: becoming a true competitor to Amazon.com Inc., according to a person familiar with the matter. Sherman is also excited about growth through mobile commerce — which GameStop expects will drive e-commerce sales above $1 billion in 2020. Despite relentless competition from traditional retailers and startups, Amazon has only increased its share of the e-commerce industry, and that trend is expected to continue, according to EMarketer Inc. Amazon has a market valuation of almost $1.5 trillion, compared with $570 million for GameStop. United States. Of course, challenging Amazon directly would be an uphill fight. He told investors on the conference call that he has been cutting costs — with plans to close 400 to 450 stores this fiscal year. Covid Doctors Find a Turning Point in Life-Threatening Cases, Father, Son Used-Car Sellers Get $5 Billion Richer in a Day, Stocks Rally as Dip Buying Intensifies After Rout: Markets Wrap, Who’s Succeeding Against the Coronavirus and Why, NASA Can’t Figure Out Why the Space Station Is Leaking Air. To its credit, GameStop generated cash in the latest quarter — $175 million worth (compared to burning through $119 million last year) — leaving the company with $735 million in cash as of August 1. He also wants the company to improve its customer service and build the infrastructure needed to offer thousands of items and services. The task of overhauling GameStop falls to George Sherman, a retail veteran who was named CEO last year after attempts to sell the company failed. Cohen’s vision, which isn’t yet public, is to broaden GameStop’s online selection and compete head-to-head with some of the biggest e-commerce companies, according to the person. “We see this as critical to our future,” he said. His most immediate task is cutting costs and shutting locations. (Photo by Johnny Louis/Getty Images). The hope is to avoid the fate of Blockbuster Video, which was pushed into oblivion by Netflix Inc., and become an online destination for everything from tech toys to tennis rackets. That’s why you should not buy GameStop As the company told investors on September 10, its total sales declined 26.7% during its most recent quarter — which ended August 1 — to $942 million while the company lost $111 million. Sherman is also excited about growth through mobile commerce — which GameStop expects will drive e-commerce sales above $1 billion in 2020. George E Sherman is Chief Executive Officer at Gamestop Corp. See George E Sherman's compensation, career history, education, & memberships. After acquiring a nearly 10% stake in GameStop -- making him the company’s biggest individual investor -- Cohen disclosed on Monday that he is holding talks with management and several board members. To pull ahead of Amazon, GameStop would need to offer consumers a better selection of products, at a lower price, with faster and more reliable delivery. GameStop is among the latest retailers requiring masks to be worn in their stores to control the spread of the coronavirus (COVID-19). My 14th book -- published in February 2019 -- is "Scaling Your Startup: Mastering the Four Stages from Idea to $10 Billion." The details of Cohen’s proposed strategy have been leaked through anonymous sources. Fauci Says U.S. Faces ‘Problematic’ Fall, Winter: Virus Upda... TikTok Judge Schedules Sunday Hearing as Trump’s Ban Looms, FAA Chief to Fly 737 Max Next Week as Agency Approval Nears, Used-Clothing Platform Poshmark Says It Filed to Go Public, Podcaster Wondery Explores Sale for Hundreds of Millions. GameStop Rises on Investor’s Plan to Make It an Amazon Rival, GameStop Soars After Co-Founder of Chewy Acquires a Stake. The physical stores would be less of a focus, though profitable locations would remain open. Amazon is much larger than GameStop — with a market capitalization of nearly $1.5 trillion about 2,631 times more than GameStop’s $570 million. (http://www.themarketbasketeffect.com/). I’m not sure how they could compete that is differentiated from others. GameStop’s sales are plunging and that trend is expected to continue for the rest of 2020. (Photo by Johnny Louis/Getty Images), Impact 50: Investors Seeking Profit — And Pushing For Change, Its recent earnings report was a disappointment, Its current CEO articulates a strategy that sounds much like the new investor’s proposal, It lacks the scale and executional excellence needed to match or surpass Amazon.