GameStop has always had a very faithful following, maintaining and strengthening its brand loyalty as the innovative company continues to diversify.
Seemingly, GameStop is always involved in acquisitions to strengthen customer relationships while leveraging its stores to optimize customer engagement.
“During the quarter, we closed on our acquisition of Geeknet and the ThinkGeek.com brand,” GameStop CEO Julian Paul Raines said during the company’s Aug. 27 second-quarter earnings conference call, according to Seeking Alpha. “Taking a moment to step back and look at the business, you have to recognize that we have a knack for identifying and developing opportunities in transformational technology and business acquisitions that are paying off for shareholders. Our early and rapid investments in refurbishing mobile devices has turned into our Technology Brands’ unit, the fastest growing AT&T and Apple dealer in America. Our ability to adapt a great idea from Australia, adjust it to American consumers, and roll it quickly has turned into our strong lineup of Loot and collectibles products. And our strong balance sheet allows us to capitalize on this success by rolling up great assets like Geeknet.”
The GameStop Technology Institute, which launched in March of 2014, has developed an in-store tablet that is set to roll out nationally, Raines noted.
“And we have developed Beacon solutions that will soon be implemented as well,” he explained. “Our digital solutions of DLC, Steam, full-game download, Kongregate and Digital Game Informer, among others, are continuing to grow and will provide a nice $1 billion business this year. Underpinning all of these great ideas is great execution and the PowerUp Rewards program. It is clear to us now that we are finding new uses for our brick-and-mortar stores as well as our websites. And behind them is probably our biggest asset, the customer data behind all our transactions.”
Raines is very proud of GameStop’s innovative, forward thinking that always places it on the cusp of new and profitable solutions.
“Our ability to diversify our business has been the correct strategy, building on our leadership in video games, while exploiting our core to grow rapidly in digital, mobile, and collectibles,” Raines added. “In the most recent quarter alone, those new businesses accounted for almost 23% of our gross profit and we expect to see that grow. But our ability to diversify into richer lines of business and products is allowing us to increase profitability.”