GameStop Is Opening A Gigantic Facility To Help Transform The Company Into An Online Store

To support its new transformation strategy, GameStop is opening a new 700,000 square foot fulfillment center in York, Pennsylvania. This new facility will expand GameStop's existing North American network and it will "support ecommerce and fulfillment needs."

This new facility is expected to be operational by Q4 2021. GameStop said this facility should help the company "grow product offerings and expedite shipping across the east coast."

GameStop's new chairman, the pet food billionaire Ryan Cohen, is said to be looking into growing the number of products that GameStop sells in an effort to increase ecommerce. Cohen is also reportedly planning to shutter more stores to increase profitability as he attempts to transition GameStop away from brick-and-mortar retailers and more toward an online business. This new fulfillment center is apparently part of that strategy.

GameStop has already found great success in ecommerce. Online shopping sales jumped by 191% for GameStop's year ended January 30.

Looking ahead, Cohen--who is one of GameStop's single largest investors--has assembled a new team around him made up of other executives from his pet food company Chewy, as well as people from Amazon.

GameStop just recently sold 3.5 million shares, generating $551 million, to help accelerate GameStop's growth and digital transformation.



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