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GameStop Begins Reopening Stores In Georgia And South Carolina, Cuts Executive Salaries

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GameStop has resumed operations of some physical stores in Georgia and South Carolina and is preparing for the opportunity to reopen stores in other states as well. The retailer has been weathering the pandemic well for a non-essential retailer: stores offering curbside pickup have retained more than 90% of their planned sales volume, and U.S. sales are up 3% since March 21.

“In very short order, we implemented a temporary curbside pickup process at the majority of our U.S. stores in accordance with state and local ordinances,” said George Sherman, CEO of GameStop in a statement. “By using our omnichannel buy online pick up in store and ship from store capabilities, we are able to operate in a safe and regulatory compliant way while meeting the increased demand for our products as more consumers work, learn, and play from home.”

GameStop’s other bright spot was Australia, where all its stores remain open. There, the company reported a 64% same-store sales increase for the five-week fiscal March period, and a 24% increase for the nine weeks ended April 4.

However, GameStop was forced to close one-third of its U.S. stores completely, and global same-store sales for the nine weeks ended April 4 are down 23%. Additionally, the majority of stores in most non-U.S. countries were closed completely, though the retailer has begun the process of reopening locations in Italy, Germany and Austria.

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The company is in the process of implementing several cost-cutting programs, including reducing Sherman’s salary by 50% alongside a 30% cut for the rest of the executive team. Certain other employees will receive temporary pay cuts ranging from10% to 30%, and part of the corporate support team has been offered the option for either a temporary furlough or a reduced workweek and pay.

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