Retail

GameStop's Top Investor Sees Epic Battle With Amazon

GameStop

The biggest investor in Dallas-based GameStop has reportedly set his sights on a lofty goal — having the video-game retailer take on the Goliath of eCommerce, Amazon, in an epic battle.

Bloomberg reported that Ryan Cohen, who now owns a nearly 10 percent stake in GameStop, is in talks with management, several board members and his own RC Ventures to have the gaming company sell a wider range of merchandise. In addition, his concept is to provide the speedier shipment of GameStop’s merchandise.

RC Ventures has expressed interest in getting more involved with GameStop in order “to produce the best results for all shareholders,” according to a filing, Bloomberg reported.

The plan would include challenging the biggest eCommerce companies, with Amazon at the head of the pack. Right now, GameStop’s focus is on video games, consumer electronics and gamer merchandise.

In 2011, Cohen started Chewy.com and went on to serve as CEO. By 2016, Chewy had sales of $900 million and had raised millions in venture capital backing. In 2017, PetSmart bought the online pet store for nearly $3.4 billion.

One of the attractions of eCommerce site Chewy.com is its broad selection. Chewy’s wide array of products include such things as dog pajamas, parrot popcorn and even saddles for horses.

A source told Bloomberg that Cohen’s plan would include adding new services to GameStop — including subscriptions to streaming video games or even the opportunity to trade in old video games.

Last week, GameStop joined forces with QuadPay to offer access to that company’s buy-now, pay-later (BNPL) platform. GameStop Chief Merchandising Officer Chris Homeister said the move would allow “customers to affordably purchase the products they want from us this holiday season.”

With QuadPay, shoppers can divide any purchase into four “interest-free installments” paid over six weeks with the debit or credit card that they already have. The BNPL service has gained traction, and the company’s app has been downloaded more than 2.3 million times.

Speculation about holiday shopping is already underway. One question in the gaming world: “Is This The Last Year For The Xbox/PlayStation Console Wars?” Microsoft and Sony have been dueling it out for years, making it a holiday tradition.

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