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GameStop (GME) Offers Black Friday Deals, Growth Plans On Track

Zacks Equity Research
·4 min read

Renowned video game and gaming accessories retailer GameStop Corp. GME revealed more about its exciting Black Friday deals, which the company had earlier mentioned on Nov 9. The offers cover a range of video game hardware, software, PC gaming equipments as well as other electronic items and pop culture collectibles. The deals will be available on the company’s website and mobile app from Nov 25 onward. Moreover, the deals will be featured across more than 3,300 GameStop’s U.S. store locations from Nov 27 till Nov 29.

We note that the company is focused on enhancing its footing across the digital and physical gaming arenas through frequent product launches that grab the interests of gaming enthusiasts. That said, let’s take a look at the company’s latest Black Friday offers as well as other growth endeavors.

Exciting Deals & Other Strategic Efforts

GameStop’s Black Friday hardware offers include Nintendo Switch system with Blue and Red Joy-Con or Grey Joy-Con along with a free collectors set of four 16 oz. Mario glasses. Moreover, exclusively for online shoppers, it will be offering a $50 GameStop gift card on the purchase of select Vizio 4K HDR Smart TVs.

In video game softwares, special offers will be available on Assassin’s Creed: Valhalla, Watch Dogs: Legion and Just Dance 2021. Offers will also be levied on Super Mario Brothers Deluxe, Splatoon 2, Yoshi’s Crafted World as well as other Nintendo Switch games. In PC bundles and accessories, the company will offer 50% discount on Sniper and Guild series PC gaming accessory bundle. It will also provide 50% off on select gaming wired headsets, while 25% discounts will be available on Gunnar glasses.

Apart from promotional offers, the company is on track with new product launches to tap dynamic growth opportunities in the gaming arena. On its last earnings call, management highlighted that the company has been receiving positive customer response across some of its new physical software titles. Its latest technology headsets and controllers have also been performing well. Going ahead, the company plans to come up with several new software titles in the fourth quarter of fiscal 2020. The company is particularly excited regarding the launch of its next-generation gaming console. It is also planning to expand PC accessories assortments.

Additionally, strong omni-channel capabilities have been supporting the company’s performance Notably, e-commerce sales skyrocketed 800% during second-quarter fiscal 2020. This followed an increase of 519% in the first quarter. The company has been witnessing advancements in curbside delivery, buy online pick in store, ship from store and web in store capabilities. GameStop plans to continue expanding its same-day delivery capabilities. It is also on track with enhancing online payment options, including private label credit card, buy now pay later options, and also leasing options for high value items. Further, its redesigned mobile application is likely to enhance customer engagement.

GameStop is also striving to improve its performance through strategic endeavors such as cost reduction, optimization of inventory, focusing on high margin product categories such as PC gaming accessories and rationalization of store base. It is also focusing on augmenting store experience, expanding PowerUp Rewards loyalty program as well as improving engagement with vendors and partners. We expect that such well-chalked endeavors will continue to drive performance of this popular gaming company. Shares of this Zacks Rank #3 (Hold) company have more than doubled in the past three months compared with the industry’s rise of 7.1%.

Looking for Solid Retail Stock? Check These

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Dollar General Corporation DG, also with a Zacks Rank #2, has a long-term earnings growth rate of 11.1%.

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