Effective from the 15th of April 2019 George Sherman will be appointed as the new CEO of GameStop. Sherman takes over from interim CEO Shane Kim, who stepped into the role in May 2018. Sherman has been on the board of directors for GameStop since 2011.
In the past Sherman has held executive roles at Best Buy, Advance Auto Parts, Home Depot, and Target Corporation. Before taking on the role of CEO for GameStop he was CEO for Verizon Wireless retailer Victra.
Dan DeMatteo, Executive Chairman for GameStop, said in a recent statement that the company is at a crucial juncture. Sherman has proven his expertise throughout his previous roles, and it is believed that he is the best man for the job. This decision comes after an in-depth review of the company’s financial alternatives and strategic position in the market.
GameStop’s board recently announced the first steps in their plan for capital allocation and shareholder return program. The appointment of Sherman as CEO will accelerate these plans, as well as several other exciting projects that have been in development for a while. These additional plans have the potential to improve the profitability and financial performance of GameStop in the long term.
GameStop has struggled in recent years, culminating in what looked to be an acquisition earlier this year. However, no agreement was reached regarding the acquisition, and so GameStop has had to struggle on without a permanent CEO. The core reason for no acquisition materializing was a lack of available financing that would make buying GameStop commercially viable for any buyer.
GameStop is just the latest in a number of different video game retailers to experience a struggle in the market. UK retailer GAME has managed to diversify and stay afloat thanks to their Belong Arenas and events and eSports business. GameStop will need to diversify as other surviving retailers have in order to keep consumers interested, and remain profitable. While the retailer has the advantage of a number of exclusive physical products under their belt each year, this won’t be enough to help them survive in the increasingly challenging market.