GameStop store managers and sales associates say the company is taking drastic measures to strengthen sales, as video game sales are fighting off huge revenue losses caused by several consumer changes.
In more than a dozen conversations with Polygon, current and former GameStop employees spoke about a state that enforces strong sales targets and integrated customer documentation, designed to extract as much value as possible from the company's diminished base.
All the employees we spoke to said they were worried about the company's future. Most reported that their customers' prices had dropped substantially over the past year.
"I have seen a change in more ambitions the company has in its profit making," said one store manager with years of experience in the company.
"The company is nice and distrustful," said one assistant manager. “You can hear it in every message they send. The building collapses and they make fun of it. "
"I think they'll close a thousand stores this year," said one old store manager with a lot of sales experience. "They have to cut costs. The retail market is dying." One manager said: "My store is known for strong sales performance. But customer sales have surpassed the last two years. Aside from some anticipated road-saturation days like Thanksgiving, Black Friday, and big game release dates, we miss our daily marketing plans almost every day. ”
All discussions of this story are done by email or telephone. In order to protect employees from disciplinary action, negotiations are conducted under the guise of anonymity. We contacted GameStop and asked for an interview or a top official, but haven't received a response yet.
Decline in sales
For many years, GameStop has been at the heart of the video gaming culture. The company operates more than 5,600 stores worldwide, 4,000 of which are in the United States and Canada. But the giant in trouble is in big trouble. Its latest thread of financial consequences is unfortunately.
GameStop share price, though available 15-year low, it is considered a negative value financial analysts. Recently, one of its leading investors included in the $ 8 million debt. Analyst Equities Research Zacks said the company "could not adapt to a rapidly changing environment," and was "another victim of a brick-and-mortar attack."
The company's response to its problems has been to reduce costs and close "operating stores," with a warning multiple closures are possible. Meanwhile, senior executives are pointing at the arrival of the next generation, due to this holiday season, which they say will boost sales.
In a recent statement, GameStop chief executive George Sherman sought to reassure the stockholders who are nervous, which says the company is preparing for a "new revenue stream ahead of the new console console launch in 2020," when PlayStation 5 and Xbox Series X are scheduled to arrive.
But sales executives and former company executives told Polygon that the company's problems were caused by a change in consumer behavior, which is far greater than the decline in the cycle. They also argue that hard-sell tactics do more harm than good.
"I do not think that (senior management) believe this to be a perversion of the cycle," said a senior official, who resigned last year. "They try to keep investors happy, and wrap up their bonuses before they go out."
Techniques for technology
Traditionally, GameStop's most profitable task has been to trade used games. Customers buy old games from the company to get the credits they use to buy new games, and then GameStop sells used games at higher grades. But as consumers turn to online retailers for online retailers and digital PC stores such as Steam and Epic Games Store, the industry is contracted. Direct retail stores like eBay and the Facebook Marketplace often offer better prices for used goods than GameStop.
The company doubles in its efforts to find other high-performance jobs, such as the hardware used. The company buys older devices, smartphones, and tablets and then updates and sells them, often to overseas distributors.
"Things have changed a lot," the assistant manager said. "Our regional manager is stressing the commercialization of technology, such as iPhones and tablets, and (prioritizing) reservations. Nobody cares about games, or customers, too. It's amazing."
Polygon was shown evidence of the target sheets that managers had to fill out, which showed that they provided 50 consumers with quotes on their used phones each week, with five leading to sales.
"I don't want to ask all customers what kind of phone, who owns that, and how much memory on the phone to quote (the price) while they are in the store watching the game," the employee said.
One employee said that in their region, failure to strike shares was punished with a warning, with three warnings leading to termination of employment.
"If we do not beat the goals set by the company, we are underwritten," said the manager who has been with the company for more than a decade. “They want us to strengthen customers by trading on their old cell phones and tablets. Recently I was visited by a senior manager who said that intimacy (hitting a target) was not enough. If you don't hit the set targets, you fail. ”
One store manager said employees were required to gather contact information for 10 customers a day, information that was later used to install various services. The manager just quit, citing issues and eating disorders. Salary for a GameStop store manager starts at $ 16 an hour, with extra salaries based on location and experience.
Workers in different parts of the U.S. They cite slightly different stones, with less serious side effects. But most emphasized how much of the game retailers currently focused on mobile phone sales.
Sell hard
The assistant manager said that last year, GameStop briefly tried to revamp its aggressive marketing tactics, known as "The Circle of Life. ”This has been the company's long-standing focus on the importance of persuading customers to trade in credit-extinguishing old games. Employees strongly encourage customers to join loyalty programs with various discounts and benefits, all of which are designed to sell more sales.
"I survived the Circle of Life nonsense," said one manager. “That was a very difficult time. About a year ago, things looked better. In fact, there was all this little training about not shortening our customers by giving them and giving them what they needed compared to the compulsory offer.
“That took about a month, before the return of the same old conversation. It's worse for quiet customers, for those who want to buy their stuff and go. I keep writing questions to them even though I see that they are upset. ”
One employee who left the company last year said: “(The company) is constantly causing us to break down our customer packs. They will teach us if we constantly harass our customers by trying to get them to pre-order a game or sign up for a rewards card. I have never seen a company so focused on tracking companion sales metrics and the performance of other non-commissioned work. ”
Trustworthy staff
Most of the staff we spoke to wanted to emphasize how much they enjoyed interacting with consumers who just wanted to talk about sports. Many also say that employees are often hardworking and dedicated to their work. "The staff is amazing," said one manager. "They want to help you customers but are bound by regional leaders and goals to hit."
A few say they still believe in GameStop as a central place in gaming culture. But the general refusal is that the company's latest indicators have a moral impact. "The joint company criticizes the account of this & # 39; s helping the customer to find value, & # 39; but it is a very busy claim," the assistant manager said. “There is a level of mistrust between the DL (regional leader) and the shops. DL reviews weekly performance records and will record the exact amount of transactions when we do not deliver the full amount of trading, and then take disciplinary steps for each of these activities. ”
Like most sales, GameStop has been experiencing high staff turnover. But senior management has never considered it a problem. "We continue to have appointments every day," said the store manager. “The training is limited. Everyone can be replaced very quickly. ”
Traffic down
"We saw a significant decrease in pedestrian traffic from this point last year," the assistant manager said. “On average, there will be at least one person in the store looking around. I now go up to three hours without consulting with clients. ”
Some store employees and managers also touched on these experiences, noting that the recent holiday season was more busy than before. One manager said traditionally that reliable business environments, such as pre-game franchise orders, have dropped significantly in recent years. "I say the number of orders we received last Madad is almost half of what we have seen in the last five years," said one former chief executive.
Some have noticed that GameStop's place in the gaming community has changed. "Introducing midnight was like a bunch of blocks, especially getting big titles like Call of Duty," said a longtime employee. “We would have a line wrapped around the mall with music, food, and games on a lot of TV. But as the years went by, they steadily became smaller and smaller. The last few fought hard to attract 20 people. Most people buy electronically, or the game is sent to them. ”
Pre-orders
Some employees say GameStop is so focused on pre-orders that it sometimes fails to send any unregistered game copies to stores. Pre-orders have been sold for sale, so there is no cost lost on the final sale or shipping.
"Pre-orders are being processed now more than ever," the manager said. "We have to give every visitor a list of upcoming games, while shopping and report on how many of them we win every day."
"GameStop slows down inventory, which means if visitors want a smaller title, they will need to pre-order," the manager said. Another note: "They've changed the algorithm. We usually get an extra copy of the game from all three pre-ordered games. But now it's the same as an add-on to five pre-ordered games."
"The reason why we didn't sell (the target) for the holidays was because we lost everything: games and programs," said one manager. “My store alone would make a ton more Christmas week if we had a plan in stock. I don't know if this was because GameStop wasn't organized enough or because they (console companies) hadn't coerced it, but it hurt us. ”
It's unclear how much stock restrictions are caused by game publishers and console makers, compared to GameStop. Polygon sent the company a request for comment on the matter, and received no response. But it is clear that it could be retailers or GameStop, or both, who are willing to ship units to virtual stores, raising the confidence of the retail sales force.
Photo: Russian Frushtick / Polygon
Digital life
GameStop issues focus on major changes in the way games are used. Younger players, in particular, have no desire for more new releases than service games that directly catch them continuously with certain drops of content.
“Fortnite it is killing the sports industry, ”said one manager. “More than half of all gamers under the age of 18 are playing Fortnite almost exclusively, so foot traffic is low. We sell V-bucks (FortniteThis is a game fee) but they probably buy more games now. ”
GameStop sells most cards for cash in the form of digital gaming stores. These are not high-quality goods, but they occupy very little space in the store, so the company sees them as potential beneficiaries. However, they tend to drive customers towards the digital stores.
"I warned them years ago that selling digital cards is a mistake," the longtime store manager said. "They don't make much profit, but they generate a lot of money, and that looks good on the monetization page."
Former GameStop company office manager said: "They make short-term profits by selling cards and codes, but it's to pay for their futures. We invite digital shopkeepers to have their lunch.
"Once customers are gone to buy a digital currency, they do not return to physical assets," the former manager of the organization said. "There is no market for used digital games, but prices are very competitive for black sellers. I think their customers are decreasing for parents who buy card or retail cards, and those people who buy Madden or Call of Duty every year, nothing more."
A former official said: “In the last ten years, little people will come and trade in the sport. But they are now grown and bought online. Unfortunately, the new generation is behaving differently. Growing up on iPads, they touch the screen to download content. They have no desire to go to the store to buy a used game. ”
The official added: “I also think GameStop prices are considered victims. Why would anyone buy a used game for $ 5 less than a new game, especially if they knew the company was paying too little to buy that copy? There are plenty of statistics that go into the price tags of the games used, but it's not a good look. ”
Time and effort
Many of our sources have said GameStop has cut long hours for staff, including time allocated outside opening hours for shelves and shows.
"This leads to a store that often feels unorganized and dirty," said one manager. “Now there is usually only one employee at the store. Between interacting with guests and doing the demand (integrated), there's no time. This has to do with the feeling of being overworked, unpaid, and a seemingly devoted and carefree shop. "
The manager said that before leaving the company, he sometimes felt unsafe. “The district manager told me to cut off the hours. I opened and closed the store on my own. I don't want to leave the other employees on their own, so I did. ”
Commodity sales are a success for GameStop these days, according to store managers, who say sales of plushies, stakes and clothing are all high. “People like to buy things that are related to their favorite sports and shows,” says one manager.
"The focus has shifted from video games to collections, because when you buy a new game, it's like 20% profit," said the former manager, "but 50% of the collections."
But while the company is cautious about sending visual games to stores, its response to sales can sometimes be excessive. "When we sell one item, we are immediately sent a ton to replace it," the employee said. “These things are always moldy. I think the buying team (in companies) needs to be calm. ”
Some managers noted that they had acquired a large number of stocks in the store, many of which could be reported. “I think they bought a lot of stock,” said another. "I had boxes of (Funko) Pops in my storeroom nowhere to be found."
Last names
A small number of staff members have been outraged by GameStop's media exposure as a sadistic company, or one facing bankruptcy. Judging by the irrefutable evidence, GameStop employees are often subjected to harsh treatment and customer abuse, which is sometimes triggered by the company's poor coverage, especially on social media.
"I want to get the proper GameStop presentation out there," said one manager. “I don't think we are all bad. We try to do more good. I think they (senior management) have very good intentions and they try their best to try to guide us in that direction. ”
But almost all employees at Polygon spoke in a negative way about the company's strategy, and its prospects.
"They don't listen to the workers," one said. “We need managers who have worked in stores that are listening to store managers. I have worked for (a series that failed to sell) its past years, and as we are, I see some warning signs. ”
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