GameStop is actively expanding its warehouse distribution network as the firm strives to become a significant e-commerce store.
GameStop announced in May that it has leased a 700,000-square-foot fulfillment facility in York, Pennsylvania. This month, GameStop announced the signing of a new contract for 530,000 square feet of premises in Reno, Nevada.
Ryan Cohen, the recently elected board chairman of GameStop and a co-founder of Chewy Inc., ascended to prominence at the Grapevine-based video game store by pledging to convert the firm into a more formidable online retailer capable of competing with Amazon.
So far, the business has added more than 1 million square feet of space, with more on the way.
In prior statements, GameStop has been vague on what the centers will be used for, other than reducing delivery times to customers on the east and west coasts.
In the business's April proxy statement, outgoing CEO George Sherman stated that the company is on a road to being a "customer-obsessed technology company that satisfies gamers."
Mr. Sherman provided a basic overview of the company's goals, which include investing in technology, enhancing customer service, extending its distribution reach, and growing the GameStop product library.
“We are continuing the work to expand our addressable market by growing GameStop’s product catalog. This includes growing our product offerings across gaming, collectibles and other natural adjacencies,” the filing said.
Wedbush Securities analyst Michael Prachter compared the fulfillment center leases to Amazon's early days of carefully expanding distribution warehouse capacity around the country. According to him, the firm may expand its product offering even further into peripheral sectors like PC components, office supplies, and other gaming accessories. #GME #GameStop