GameStop will open on Thanksgiving and the numbers explain why
For the first time in several years, GameStop will be open on Thanksgiving.
The company kept stores closed for the holiday starting in 2014, and that policy has been in place ever since. The change -- which was first reported by Kotaku -- is motivated, according to GameStop, by "many of our store associates and guests [who] asked for this."
Like many retail-focused companies, fourth-quarter business during the holiday season accounts for an outsized portion of GameStop's earnings. The company claims the Thanksgiving Day opening is all because of feedback; that may be partially true, but a look at the numbers -- as shared in quarterly and annual filings -- gives a sense of what is likely the real thinking behind this change.
Prior to the change, GameStop's holiday performance remained relatively steady. The company reported that Oct.-Dec. sales accounted for 43, 40, 40, 39, 39, 37, 40, and 41 percent of its annual business from 2006 through 2013.
That figure dropped back down to 37 percent in 2014, and then 38 percent and 35 percent in 2015 and 2016, respectively. It's likely that last year's performance set off some alarm bells, as the company's weakest holiday season in more than 10 years.
That's only part of the picture, however. Sinking holiday sales aren't scary if the overall business is both healthy and growing. Here, again, we can turn to GameStop's business filings for answers.
The company's latest annual report details year-over-year changes in the business from 2013 through 2016. During that period, earnings rose steadily until last year -- when they spiked sharply downwards.
Another piece of evidence speaks to the business thinking behind this return to Thanksgiving Day hours: store closings (there's a blog that tracks them). Since 2013, GameStop has closed more than 100 stores each year; 53 have already shuttered in 2017, a year when the company is expected to once again close more than 100.
There's one, final factor to consider: the competition. Big-box stores like Best Buy and Walmart stay open on Thanksgiving, and that's one day of business completely lost to rivals during the year's busiest shopping season.
In the end, it's the same old story that most other brick-and-mortar retailers are facing: online is winning. It might not seem like opening or closing on just one day makes a difference -- it likely didn't for GameStop because closing on Thanksgiving was good PR, at least until 2016 -- but at this point the company is seemingly looking to bolster its flagging retail business however it can.
Topics Gaming
Adam Rosenberg is a Senior Games Reporter for Mashable, where he plays all the games. Every single one. From AAA blockbusters to indie darlings to mobile favorites and browser-based oddities, he consumes as much as he can, whenever he can.Adam brings more than a decade of experience working in the space to the Mashable Games team. He previously headed up all games coverage at Digital Trends, and prior to that was a long-time, full-time freelancer, writing for a diverse lineup of outlets that includes Rolling Stone, MTV, G4, Joystiq, IGN, Official Xbox Magazine, EGM, 1UP, UGO and others.Born and raised in the beautiful suburbs of New York, Adam has spent his life in and around the city. He's a New York University graduate with a double major in Journalism and Cinema Studios. He's also a certified audio engineer. Currently, Adam resides in Crown Heights with his dog and his partner's two cats. He's a lover of fine food, adorable animals, video games, all things geeky and shiny gadgets.
