Gamestop: The meme stock that is reverting back to brick and mortar

Gamestop: The meme stock that is reverting back to brick and mortar
Ryan Cohen co-founded Chewy. Cohen sold Chewy to PetSmart for $3.35 billion in 2017. After selling Chewy, Cohen had a tremendous amount of money and self-confidence. In late 2020, he bought 10% of GameStop. In January 2021, Cohen was on the board. By June 2021, he was chairman of the board and filled the board with his directors of his choosing. GameStop redid its mobile app and website, and opened a fulfillment center in Pennsylvania., and a customer service facility in Florida. Online order deliveries were cut from four to five days to two days. By the end of 2021, GameStop had closed roughly 250 stores. GameStop started trying to appeal to more people so they started selling things like beanbags, Nerf guns, smartwatches, and gaming chairs.
Supply-chain issues hampered the company. When Christmas 2021 rolled around, the shipping containers full of new product did not arrive on time. These products included televisions which had to be marked down to sell online because the stores were too small to sell instore. The shipping containers full of TVs continued to arrive and outpace what Gamestop could sell so much so that they were forced to donate many to charity. A former director of Gamestop said delivery bottlenecks were so bad that inventory sometimes blocked the warehouse doors. Losses continued to mount at GameStop so in May 2022 Cohen gave instructions to abandon the e-commerce plan and focus on stores. In July of 2022 GameStop began trying to figure out how to get out of two warehouse leases. That same month, GameStop launched an NFT marketplace. Around that time the NFT market took a nosedive off a cliff. In late August 2022, GameStop had fully shifted to focus on brick and mortar stores. GameStop reported its seventh quarterly loss in October. More job cuts are expected.