Business Analysis of GameStop

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of GameStop

GAMESTOP

Business Overview

GameStop Corp. operates as an omnichannel video game retailer. It sells new and pre-owned video game hardware; video game software; pre-owned and value video game products; video game accessories, such as controllers, gaming headsets, virtual reality products, memory cards, and other add-ons; and digital products, including downloadable content, network points cards, prepaid digital and subscription cards, and digitally downloadable software. The company also sells mobile and consumer electronics, including wireless products and services, and accessories, as well as new and pre-owned smart phones; personal computer (PC) entertainment software in various genres, including sports, action, strategy, adventure/role playing, and simulation; and strategy guides, magazines, and interactive game figures. In addition, it offers collectibles that include licensed merchandise related to the video game, television, and movie industries, as well as pop culture themes; and operates electronic commerce Websites under the GameStop, EB Games, Micromania, and ThinkGeek brand names. Further, the company operates kongregate.com, a browser-based game site; Game Informer magazine, a print and digital video game publication; iOS and Android mobile applications; Simply Mac, a certified Apple consumer electronic products reseller, as well as offers certified training, warranty, and repair services; and Spring Mobile, an authorized AT&T reseller operating AT&T branded wireless retail stores, as well as pre-paid wireless stores under the Cricket Wireless name that offers prepaid services, wireless devices, and accessories. As of January 28, 2017, it operated approximately 7,535 stores in the United States, Australia, Canada, and Europe. GameStop Corp. primarily offers its products through stores under the GameStop, EB Games, and Micromania names. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1994 and is based in Grapevine, Texas.

GameStop

GameStop


R&P Rank: 309
Sector: Retail
Industry:Specialty Retail
H.Q Location:Texas
Website: www.gamestop.com
Company Address:
625 WESTPORT PARKWAY, GRAPEVINE TX 76051
Ph:817-424-2000

Business Analysis of GameStop

The Retail Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how GameStop compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by GameStop to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of GameStop with an interactive chart.

  1. Revenue Growth: GameStop reported a revenue growth of 0.7% year-on-year during 2016. Specialty Retail Industry grew at -1.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, GameStop spent 68.8% of its total revenues on COGS. Specialty Retail industry average (COGS share of revenue) in the same period was 76.8%
  3. R&D share of Revenues: GameStop R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, GameStop spent 22.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Specialty Retail industry average SG&A spending in the same period was 16.8%
  5. Inventory share of Revenues: As a percentage of revenue, GameStop spent 12.4% of its total revenues on Inventories. Specialty Retail industry average Inventory spending in the same period was 13.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, GameStop invested 6.7% of its total revenues on Accounts Payable (A/P) Specialty Retail industry average Accounts Payable investment in the same period was 7.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, GameStop invested 1.9% of its total revenues on Accounts Receivable (A/R). Specialty Retail industry average Accounts Receivable investment in the same period was 8.4%
  8. PP&E share of Revenues: As a percentage of revenue, GameStop invested 5.2% of its total revenues on Property, Plants, and Equipments (PP&E). Specialty Retail industry average PPE investment in the same period was 11.9%
  9. Intangibles share of Revenues: As a percentage of revenue, GameStop invested 19.3% of its total revenues on Intangibles. Specialty Retail industry average Intangibles investment in the same period was 7.2%
  10. Net Margins: GameStop Net Margins in the year 2016 were 4.3%. Specialty Retail industry average Net Margins in the same period were 2.7%

Sector and Industry Association of GameStop

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

GameStop is associated with Retail Sector and Specialty Retail Industry.

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

  • Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
  • Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
  • Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
  • Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
  • Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
  • Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

Industry Ranking of GameStop

With $9.4 billion revenues, GameStop ranked number 11 of all the companies in the US Specialty Retail industry. There were a total of 50 public companies in the US Specialty Retail industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Specialty Retail industry by revenues during 2016 were:

  1. Best Buy ($39.5 billion)
  2. AutoNation ($21.6 billion)
  3. Penske Automotive Group ($20.1 billion)
  4. Staples ($18.8 billion)
  5. CarMax ($15.1 billion)
  6. Murphy USA ($11.6 billion)
  7. CST Brands ($11.1 billion)
  8. Office Depot ($11 billion)
  9. Group 1 Automotive ($10.9 billion)
  10. Sonic Automotive ($9.7 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of GameStopand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of gamestop

Office Depot (ODP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Office Depot Inc with $11 billion revenues in the year 2016 was the number 8 Specialty Retail company. Read this report to know the top competitors of Office Depot and identify growth and cost optimization opportunities of Office Depot

Group 1 Automotive (GPI) Business Analysis – Analyze Historical Performance, Strategic...

Group 1 Automotive Inc with $11 billion revenues in the year 2016 was the number 9 Specialty Retail company. Read this report to know the top competitors of Group 1 Automotive and identify growth and cost optimization opportunities of Group 1 Automotive

Sonic Automotive (SAH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sonic Automotive Inc with $10 billion revenues in the year 2016 was the number 10 Specialty Retail company. Read this report to know the top competitors of Sonic Automotive and identify growth and cost optimization opportunities of Sonic Automotive

Lithia Motors (LAD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Lithia Motors Inc with $9 billion revenues in the year 2016 was the number 12 Specialty Retail company. Read this report to know the top competitors of Lithia Motors and identify growth and cost optimization opportunities of Lithia Motors

Dick’s Sporting Goods (DKS) Business Analysis – Analyze Historical Performance, Strategic...

Dick's Sporting Goods Inc with $7 billion revenues in the year 2016 was the number 13 Specialty Retail company. Read this report to know the top competitors of Dick's Sporting Goods and identify growth and cost optimization opportunities of Dick's Sporting Goods

Tractor Supply (TSCO) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tractor Supply Co with $7 billion revenues in the year 2016 was the number 14 Specialty Retail company. Read this report to know the top competitors of Tractor Supply and identify growth and cost optimization opportunities of Tractor Supply

Revenues Analysis

GameStop (GME) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Gamestop Corp. (GME) from 2012 to 2016. GameStop generated a total of $9.4 billion revenues during 2016. GameStop reported a revenue growth of 0.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in January.

GameStop (GME) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Gamestop Corp. (GME) from 2002 to 2016. GameStop generated a total of $9.4 billion revenues during 2016. GameStop reported a revenue growth of 0.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in January.

GameStop (GME) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Gamestop Corp. (GME) revenue growth with Specialty Retail industry growth during the last five years from 2012 to 2016. GameStop reported a revenue growth of 0.7% year-over-year during 2016. The Specialty Retail industry growth was -1.6% year-over-year during 2016. GameStop growth was faster than the industry during 2016.

Profit Analysis