GameStop’s latest move is great for employees – but do customers care?
Video game retailer recently added some new employee benefits in an effort to retain talent. These include pay raises and stock options for valued store personnel.
The options vest over three years, and theoretically will provided added incentive for those thinking about leaving the store for greener (busier?) pastures. The problem is that with GameStop’s current revenue, stock prices aren’t exactly flying high.
While those perks sound great for store employees, the changes do little to entice more shoppers into the stores. One could make an argument that stock options will incentivize store employees to run things better, but that argument is a stretch.
What GameStop really needs is a compelling reason for gamers to visit its stores. Video games are the quintessential virtual entertainment form. Online providers like Steam and Epic – not to mention Apple and Google Play outlets – obviate the need for a store at all.
Unless you broke your PS-4 controller and just can’t wait a day to get a replacement from Amazon, who goes there? GameStop offers zero point of difference in terms of item selection, price, or product availability. Can you use DoorDash at GameStop – asking for a friend.
Unless GameStop starts working to at least keep up with supermarkets and online shopping, those three-year vesting terms for stock options are likely to outlast the company.