GameStop is planning to transform itself into an online marketplace to rival Amazon as it faces hundreds of store closures.
Ryan Cohen, GameStop’s largest individual investor and entrepreneur behind Chewy.com, is planning to transform the video game giant into a major ecommerce player, according to Bloomberg.
According to sources familiar with the matter, Cohen is in discussions with GameStop’s management regarding an ambitious strategy to expand its ecommerce operations to include a far wider array of products and services.
This would include improving its infrastructure to shorten delivery times and improve customer service, allowing it to sell thousands of items and introduce an online video game trade-in platform.
Other digital services such as game streaming subscriptions would also play be introduced, according to sources.
Cohen, who owns a 10 per cent stake in GameStop, built a similar platform with Chewy.com before selling it for more than $3 billion.
While it’s not clear whether his ideas will be implemented, it will be an enticing prospect for the retailer’s management which is facing the closure of around 500 stores this year.
The retail giant has a huge bricks-and-mortar footprint across the globe totalling more than 5000 stores, however it is facing its third consecutive year of losses.
On a positive note, GameStop’s shares have jumped more than 44 per cent this year, boosted by the upcoming release of next-gen consoles and Cohen’s ambitious plans.