Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a account? Log In

Placer Bites: Game on for GameStop & Best Buy's Future

Ethan Chernofsky
September 23, 2019
Placer Bites: Game on for GameStop & Best Buy's Future

In this week's Placer Bites, we dive into two consumer electronics giants facing some intense criticism. But is it all warranted?

Starting In On GameStop

It hasn’t been an amazing 2019 for GameStop, which marked a weaker than expected Q2 earnings call with an announcement that they’d also be closing nearly 200 underperforming stores. Yet, the are some indications that Q3 may have given the brand a needed silver lining. July and August were 2.2% and 4.7% above the baseline for the period beginning with January 2018, a significant improvement from 2018 numbers where the same months were 0.1% above the baseline in July 2018 and 0.7% below in August 2018.

Diving in deeper shows this potentially positive trend even more clearly. Comparing quarterly visits nationwide year over year, saw a decrease in average daily visits in Q1 and Q2 2019. Q1 2019 saw 5.6% fewer visits than the same quarter in 2018, while Q2 saw 3.9% fewer visits than the year prior. However, looking at average daily visits in July and August compared to the Q3 2018 average shows an increase of 3.8% in 2019. 

Will this necessarily drive improved same-store sales? No.

Does it show that the company still possesses the brand equity necessary to drive a transformation? Certainly.

The Best Buy?

Best Buy beat expectations in Q2 but still suffered a drop in value with heavy concerns over the impact of tariffs on margins. But an additional concern came from growing online sales at the expense of offline performance. The question centers around how the brand will position itself via-a-vis a transition from pure offline retail to a bricks-and-clicks approach that attempts to leverage both assets.

The concern didn’t just find its basis in general fears but in declining visits to stores. Comparing traffic to the baseline for nationwide visits from January 2018 through August 2019 painted a difficult picture for the consumer electronics giant. The first six months of 2019 were below the baseline for the period. And Q3 kicked off to a slow start with 2019 visits in July 1.5% below the baseline compared to 2.5% above in 2018. Yet, August showed signs of a potential turnaround. Visits were 11.3% above the baseline for the period, besting August 2018 which rose 6.6% above. 

And this is a critical time for the retailer who is now building into the holiday period which is so critical to its offline performance. Can they overcome a week kick-off to the year to rebound in time to dominate the critical retail peak?

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Free
Oops! Something went wrong while submitting the form.
Checking in With Discount & Dollar Stores
Peeking Behind The Curtain: Movie Theaters in 2023 and Beyond
Diving Into Brick-and-Mortar Eyewear
Getting Into Gear: Exploring The Auto Part Industry
Recapping Valentine’s Day 2024 Foot Traffic Trends
Fitness: A Strong Start to 2024
Dutch Bros. Continues To Percolate Visits
Super Bowl 2024:’s Postgame Foot Traffic Analysis
CAVA & sweetgreen Are On the Rise
Hats Off For Off-Price
Who Is Shopping at Malls?
Drilling Down Into Home Improvement
Walmart, Target, Costco & Superstore Space 2023 Recap
Catching Up With Shake Shack and Wingstop
Something To Chew On: Demographic Shifts at Steakhouse Chains Office Index: Looking Back at 2023
Recapping RBI & Yum! Brands’ 2023 Foot Traffic Performance White Paper Recap – January 2024
Who Shops at Anthropologie and Urban Outfitters?
Three Taco Chains to Watch in 2024
Starbucks and Dunkin’: 2023 in Four Data Points
Who Visits CVS and Walgreens?
Fashionably Frugal: Apparel in 2023
Catching Up With Fast Food
The Grocery Sector in 2023: An End-of-Year Recap
3 Mall & Shopping Center Trends for 2024
Bakery Chains Rising To The Top and Esri Partner to Deliver Geospatial Analytics
Tampa Tourism Trends
Going For The Green: The Changing Dynamics Of Country Clubs
Christmas Day Dining Recap
Major Urban Shopping Districts – Holiday Season Recap Office Index: December 2023 Recap
Recapping the 2023 Holiday Shopping Season White Paper Recap – December 2023
7 Retail & Dining Segments to Watch in 2024
Diving Into Holiday Season Favorites
Super Saturday and Christmas Eve Eve: A Winning Combination
3 Budget Grocery Chains Finishing 2023 On a High Note
Making It In America: International Chicken Chains Bring The Heat
Domestic Tourism at a Glance: A Q3 2023 Roundup
Five Pizza Chains On The Rise
Jewelry Brands Taking Advantage of the DTC Opportunity
Secondhand News: Kids' Thrift Shops
Recapping 2023’s Dining M&As
MetLife Stadium Kicks Off Football Season Office Index: November 2023 Recap
Small Coffee Chains Brewing Big Success White Paper Recap – November 2023
Thanksgiving Travel 2023 Recap
Checking in With Nike and Lululemon
Black Friday 2023 Retail Recap
Starbucks’ 2023 Holiday Menu & Red Cup Day Performance
Turkey Wednesday 2023
Who Attended the 2023 Pickleball Championship? 
Three Surprising Holiday Shopping Trends
What’s in Store for Ulta Beauty This Holiday Season?
Best Buy and Department Stores: A Holiday Deep Dive
Discount & Dollar Stores: Strength Toward The End of the Year
The State of Off-Price Retail: Discounts Seal The Deal
Placer Mall Index Recap: October 2023 Office Index: October 2023 Recap
Retail Corridors Ahead of the 2023 Holiday Season
California, Here Gap Comes
Checking in With Home Improvement
Getting Into the Glasses Game: Warby Parker Takes Over
Fitness Positioned for a Strong 2023 Finish
White Paper Recap: October 2023
Coffee Giants Brewing Up Business
Popeyes and Burger King Lead the Way
Diving into Yum!
Looking Ahead to Black Friday 2023
Blockbusters Drive Movie Theater Comeback
Crocs and Boot Barn: Shoe-Ins for Success
McDonald’s and Chipotle's Winning Recipe
The State Of Steak: Checking in With Texas Roadhouse
Pleasant Pastimes: Pickleball Potential Proves Potent
Who’s Driving Downtown Manhattan’s Weekend Revival?
Diving into Downtown Manhattan Foot Traffic Trends
Rite Aid: Rightsizing Right
Major League Soccer: Its Die-Hard and Casual Fans
The Anchor Recap: September 2023 Office Index: September 2023 Recap
Placer Mall Index Recap: September 2023
September White Paper Recap
The Consumer Habits of College Students
JCPenney: Rightsizing and Revitalizing
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023 Office Index: August 2023 Recap