Massive changes continue to take place at GameStop as the video game and merchandise retailer restructures itself to succeed in an environment increasingly focused on online marketplaces. Not only has GameStop managed to stave off bankruptcy during the ongoing COVID-19 pandemic, but it did so in part due to a viral effort to purchase GameStop stock. GameStop has now made another major change at the executive level of the company, hiring a new CEO and CFO each with years of experience at Amazon.
For GameStop's CEO position, Matt Furlong has been chosen. For the past two years, Furlong has been Amazon Australia's country manager. Prior to that, he was the GM & Category Leader of Home Improvement at Amazon. Suffice to say, he has veteran experience in e-commerce, which GameStop will put to use immediately. Furlong will take up the position starting June 21.
As for the CFO position, GameStop has appointed Mike Recupero. It won't come as a surprise that Recupero was also a long-term executive for Amazon. Previously, Recupero lists the position of VP of Finance and CFO for Amazon's North American Consumer business. He has more than 17 years of experience at Amazon total, including roles as a senior finance analyst, finance director, and as VP of Finance/CFO of Prime Video. Recupero will officially take on the position starting July 12.
Outgoing CEO George Sherman and CFO Jim Bell helped GameStop survive the tremendous obstacles placed on the company by the COVID-19 pandemic. However, GameStop's direction going forward appears to be in a much different direction compared to what the two may have otherwise been expecting. In September 2020, Chewy Inc. cofounder Ryan Cohen was brought onto GameStop's board and has made no secret of his plans to transition GameStop's focus online. Cohen was elected GameStop's chair of the board as part of the same proceedings that saw Furlong and Recupero brought on.
GameStop closed nearly 700 stores during 2020, plus nearly 120 more in early 2021. Further, it's planning a stock sale of 5 million shares to find an investment in the company's future plans. Suffice to say, its moving rapidly toward a broader online presence in years to come.
As for what GameStop's online presence will look like, that remains to be seen. It's possible that it may not look much different than what it already looks like now, focusing more on internal efficiencies and cutting fat. It may be a completely different business and retail may continue to be further phased out. Truly, GameStop could be both better and worse for video game players. It could focus more on gaming or less. Changes for the company are only just beginning.
Source: IGN