News has been dominated by the global COVID-19 pandemic — and for good reason. But still, there have been other news articles that may not have gotten the attention they would have otherwise — that, or they’re easy to forget when people have been marathoning your favorite show or worrying about if they’ll get their next paycheck. So today is a round-up of some of these latest tidbits and developments.
GameStop’s Board Room Shuffle
As GameStop tries to pull itself out of its funk, the company announced four directors are retiring and three new members are joining the company’s board. One of the men retiring is Dan DeMatteo, one of the founders of GameStop and the current chairman of the board of directors. But gaming fans might better recognize the name Reginald (Reggie) Fils-Aimé. He was Nintendo of America’s president from 2006 until 2019.
He was often a staple at gaming conventions and has made appearances on various talk shows and fan channels.
GameStop stock jumped nearly 14% in response to the news.
This new makeup of GameStop’s Board of Directors also means that the median length of tenure on the board is currently one year, a huge drop from the previous median of eight years. GameStop is hoping to keep their committees fresh with new guidelines hoping members will serve for ten years or less. That likely means a healthy influx of new ideas, but that also means greater instability.
But, as you’ll see below, maybe they have other things to worry about…
GameStop is Essential?
Countries all around the world have taken different measures to prevent the spread of the novel coronavirus. Even here in the US, orders and enforcement have varied from state to state — sometimes from city to city. But as governments struggle between preventing a local epidemic and keeping communities running as smoothly as possible, many corporations have taken initiative and either reduced their hours (Walmart) or shut down completely (Hot Topic, Kohl’s).
However, GameStop caused quite a stir when various reports emerged that GameStop wanted to go to the courts if they were ordered to shut down. They sent out memos to stores telling workers that, should law enforcement show up, they were to ask the officials to call GameStop or make the call themselves to explain that GameStop was an “essential retail” establishment that would make it exempt from orders to close.
Employees on social media (including Reddit) were furious, especially since some workers reported they were not getting supplies to keep their stores sanitized.
It wasn’t until after the public outrage started that GameStop announced more measures like temporarily stopping trade-ins and turning off all (and not just some) interactive displays. Later, Ars Technica confirmed that GameStop stores did close in California after the governor’s “shelter in place” order.
But considering their reduced hours were only scheduled for a week and the fact that GameStop made flyers to pass to law enforcement, I imagine this was only due to public outrage. It’s understandable why GameStop would want to remain open. Big hits like Animal Crossing: New Horizons and Doom were released, and sales are up as people try to find some entertainment during the pandemic. But to seriously want to file injunctions to claim that video games, electronic accessories and figures are essential? When there are places like Walmart and Target that are open that would definitely carry these? Yeah, not a good look, GameStop.
SecondSpin Shuts Down
As was speculated in my article about FYE’s new owners, SecondSpin.com is being shut down.
The company confirmed it would be closing in a few weeks after 24 years of service. FYE.com will still sell used items, but it could not recommend a place for international customers.
As of this writing, most items on SecondSpin are 40% off. I am curious as to how big of a discount they’re going to offer. Since they could shift remaining stock to FYE.com, they don’t necessarily have to sell everything off. I also still wonder if, eventually, FYE stores will put more restrictions on used media. We’ll likely see more changes, but I’m sure they’re put on hold right now because of the pandemic. Considering FYE was already in danger before the outbreak, this is really going to affect their bottom line and put Sunrise Records in a tough spot regarding the chain’s future.
Walmart Prepares a Prime Challenge
Amazon Prime is incredibly popular subscription program. Latest estimates put it at about 112 million members in the United States, which is about one-third of the population.
So it’s no surprise that Amazon’s rivals have tried to challenge the free-shipping-and-more program, as people have gotten used to not paying additional for shipping. But shipping costs often eat into profit margins and sometimes are very hard to overcome when other major retailers can better absorb the cost.
In 2015, Walmart, the king of brick-and-mortar, decided to offer their own free shipping program. For $49, ShippingPass would allow most Walmart.com purchases to be eligible for free shipping instead of having to reach a $50 minimum. In exchange for a lower price than Prime, it had none of the additional benefits like video streaming. However, just two years later, Walmart abandoned ShippingPass and instead lowered the free shipping threshold to $35, where it has been ever since.
Now, though, Walmart is trying to compete with Prime once again. According to Vox, Walmart+ would partially replace Walmart’s $98-a-year grocery delivery service, but not much else is known about the program. Testing was scheduled for as early as March, but I’m sure the COVID-19 concerns is what pushed it back. Vox indicates that Walmart may test different price points and perks, although executives acknowledge it may be an uphill climb to challenge the juggernaut, as their e-commerce side is not yet profitable and Amazon dominates online sales.
But Walmart has also been prepping in other ways. First, now they offer third-party fulfillment service. This means other sellers’ items can be sold and shipped by Walmart just as many choose to do on Amazon. The company is also combining their in-store and online teams that decide what Walmart buys. This means that pricing online and at brick-and-mortar stores will be more consistent. If people can get online prices at their local store, this may give them a leg-up on Amazon, and with Walmart+ on the way, it can be a way that Walmart can leverage both sides of their business.