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GameStop adds Amazon talent to lead growth

(Bloomberg)—GameStop Corp. named former Amazon.com Inc. executive Elliott Wilke as its chief growth officer, the latest in a string of senior executive appointments, and part of a corporate overhaul by activist investor and board member Ryan Cohen.

In addition to Wilke, GameStop also named Andrea Wolfe as vice president of brand development and Tom Petersen as vice president of merchandising to help implement Cohen’s strategy of turning the brick-and-mortar chain into an ecommerce powerhouse. GameStop is No. 34 in the 2020 Digital Commerce 360 Top 1000.

 

Wilke spent the past seven years at Amazon (No. 1), and will start on April 5, while Wolfe and Petersen were previously at Chewy Inc. (owned by No. 19 PetSmart Inc.) and joined the company effective Monday. Cohen founded web-only pet brand Chewy.

The move makes it appear that Cohen is acting as CEO, Wedbush analyst Michael Pachter said by email. “It is impossible to believe that George [Sherman] would have made these decisions without prompting from Cohen.”

Prior to Tuesday’s appointments, Cohen had brought in a number of new executives, including a chief technology officer and Chewy’s former vice president of customer care. GameStop’s chief financial officer was pushed out last month as part of the revamp, and was followed last week by another senior executive.

GameStop, based in the Dallas suburbs, has suffered with the video-game industry’s shift to online distribution. With gamers downloading more and more—or at least ordering software and gear via ecommerce—there’s less reason to make a trip to a physical store. Total sales for the gaming chain declined 21.3% last year. However, online sales rose 191.3% as shoppers shifted would-be store sales to online channels. Ecommerce made up 34% of GameStop’s total sales compared to 12% last year, the retailer reported. .

Last week, the roller-coaster stock championed by Reddit-based traders, reported disappointing fourth-quarter earnings and hinted at the possibility it may sell additional shares to take advantage of soaring demand.

GameStop trading has been up and down over the past five weeks as the retail darling saw a second wave of euphoria from amateur investors. The stock soared through the first ten days of March before experiencing bouts of heightened volatility as Reddit-armed retail traders sparred with short sellers.

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