1/ GameStop is one of the most fun businesses to study for both its success and failure.
Relative to other specialty retailers, it dominated up until the financial crisis, but has since done very poorly.
But unlike Tower Records or Blockbuster, it is still in business
1. Accessibility
2. Deeply trained expert staff
3. Tailored loyalty program
4. Custom inventory management for used game sales
There are 5,500 GameStop stores, often more than one in the same mall (mostly because of EB acquisition). Can always find one.
They install ramps--not for wheelchairs, but for strollers because parents are the real buyer
As @joosterizer told me recently, try to go into a GameStop and stump a staff member. They can help you navigate much better than a generic retail employee. Creates loyalty and trust that wouldn't be possible if they didn't just focus so specifically on games.
Standard reasons for a loyalty program, but it helped them manage inventory with pre-sales and reserves, and they used Game Informer (only remaining gaming magazine really) to keep people interested.
This is the most interesting. Blockbuster games would be resold 6x, and GameStop made all the money on resales.
Required complicated accounting and inventory systems to manage re-sales. Others couldn't compete.
So interesting to me that edge can be developed and then so quickly eroded.
Its always Day One
Charts were made via an internal tool @OSAMResearch developed by @Jesse_Livermore