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====COVID-19 pandemic==== =====American division pandemic response===== [[File:Gamestop Liquidation - Melbourne Square Mall - Melbourne, FL.jpg|200px|thumb|A store in the [[Melbourne Square (mall)|Melbourne Square]] mall in [[Melbourne, Florida]] being [[liquidation|liquidated]] in December 2020]] [[File:Game Stop 33rd St for 2020 election jeh.jpg|200px|thumb|A GameStop and [[ThinkGeek]] store in [[New York City]] in November 2020, boarded up due to concerns of violence following [[2020 United States presidential election|the presidential election]]]] Government efforts to slow the spread of [[COVID-19]] required GameStop to close the physical operation of all of its 3,500 stores from roughly March to May 2020, though not without some controversy in the early stages. Throughout this time, it continued with online and curbside sales. Sherman and the board of directors took a 50% pay cut while other executives took a 30% cut to offset losses.<ref>{{Cite web |last=Amore |first=Samson |date=2020-04-23 |title=GameStop CEO George Sherman, Executive Team Take 50% Pay Cut Amid Coronavirus Pandemic |url=https://www.thewrap.com/gamestop-ceo-george-sherman-executive-team-take-50-pay-cut-amid-coronavirus-pandemic/ |access-date=2025-05-23 |website=TheWrap |language=en-US}}</ref> While digital sales grew by 519%, its retail dropped by more than 30% in the same period from the prior year, and the chain reported a {{USD|165 million}} loss in contrast to a {{USD|6.8 million}} for the same quarter in 2019. However, with the [[Xbox Series X]] and [[PlayStation 5]] still planned for release in the latter part of 2020, Sherman expected to be able to recover from these losses.<ref>{{cite news | url=https://www.gamespot.com/articles/gamestop-loses-165-million-after-temporarily-closi/1100-6478216/ | title=GameStop Loses $165 Million After Temporarily Closing More Than 3,000 Stores Due To COVID-19 | first=Eddie | last=Makuch | work=[[GameSpot]] | date=June 9, 2020 | archive-date=June 10, 2020 | archive-url=https://web.archive.org/web/20200610035411/https://www.gamespot.com/articles/gamestop-loses-165-million-after-temporarily-closi/1100-6478216/ | url-status = live }}</ref> In mid-March 2020, GameStop faced criticism for its response to the [[COVID-19 pandemic]] in North America, with employees and social media users accusing the company of placing its business ahead of the safety of its staff and customers, in order to capitalize on an influx of video game purchases and related products for entertainment during the pandemic and related lockdowns.<ref name=noidea>{{Cite news |url=https://www.vice.com/en/article/game-stop-struggling-coronavirus-cleaning-supplies-employees/ |title=GameStop Has No Idea What to Do About Coronavirus |last=Klepek |first=Patrick |work=[[Vice Media]] |date=March 17, 2020 |archive-date=September 24, 2020|archive-url=https://web.archive.org/web/20200924124659/https://www.vice.com/en_us/article/4agpwp/game-stop-struggling-coronavirus-cleaning-supplies-employees |url-status=live}}</ref><ref name=outraged/><ref name=failing>{{Cite news |url=https://www.polygon.com/2020/3/17/21184063/gamestop-stores-coronavirus-covid-19-employees| title=GameStop workers say the company is failing to address the coronavirus| last=Campbell| first=Colin |website=[[Polygon (website)|Polygon]] |date=March 17, 2020 |archive-date=September 9, 2020 |archive-url=https://web.archive.org/web/20200909063711/https://www.polygon.com/2020/3/17/21184063/gamestop-stores-coronavirus-covid-19-employees|url-status=live}}</ref> GameStop stated that it would suspend in-store events (including midnight launches) and the use of demo stations, perform additional cleaning, and structure lines and limit store capacity to enforce [[physical distancing]].<ref name=failing/> To prevent enlarged crowds for two high-profile video game releases on March 20β''[[Animal Crossing: New Horizons]]'' and ''[[Doom Eternal]]'', GameStop announced that it would begin selling ''Doom Eternal'' in its stores a day ahead of its official release date.<ref>{{Cite news |url=https://www.gamespot.com/articles/gamestop-sold-doom-eternal-a-day-early-due-to-soci/1100-6474952/ |title=GameStop Sold Doom Eternal A Day Early Due To "Social Distancing" Concerns | first=Eddie | last=Makuch |website=[[GameSpot]] |archive-date=November 15, 2020 |archive-url=https://web.archive.org/web/20201115173814/https://www.gamespot.com/articles/gamestop-sold-doom-eternal-a-day-early-due-to-soci/1100-6474952/|url-status=live}}</ref> ''[[Polygon (website)|Polygon]]'' reported on March 17 that several stores in the San Francisco area had remained open, seemingly in violation of a [[stay-at-home order]] issued by Bay Area counties that restricts non-essential business. Several employees told ''Polygon'' and ''[[Vice Media|Vice]]'' that they did not receive additional cleaning supplies that were to be provided by corporate, requiring them to purchase them on their own and request reimbursement.<ref name=noidea/><ref name=essential>{{Cite news |url=https://arstechnica.com/gaming/2020/03/does-gamestop-really-need-to-be-open-during-the-coronavirus-pandemic/|title=GameStop says it's "essential retail" to fight forced closures [Updated] |last=Orland |first=Kyle |website=[[Ars Technica]] | date=March 20, 2020 |archive-date=April 8, 2020 |archive-url=https://web.archive.org/web/20200408220816/https://arstechnica.com/gaming/2020/03/does-gamestop-really-need-to-be-open-during-the-coronavirus-pandemic/ |url-status=live}}</ref><ref name=failing/> A memo obtained by ''[[Kotaku]]'' on March 19 indicated that GameStop saw itself as an [[essential business]] because some of its technology products are relevant to enhancing [[remote work]], required in many cases during the pandemic. GameStop reiterated the safety measures that it had put in place, and also announced that it would reduce store hours and suspend all trade-ins until at least March 29, 2020, and offer curbside pickup.<ref>{{Cite news |url=https://www.theverge.com/2020/3/19/21187357/gamestop-coronavirus-essential-retail-shut-down-open |title=GameStop claims it is "essential retail" to remain open amid coronavirus pandemic |last=Farokhmanesh |first=Megan |website=[[The Verge]] |date=March 19, 2020 |archive-date=December 31, 2020 |archive-url=https://web.archive.org/web/20201231022221/https://www.theverge.com/2020/3/19/21187357/gamestop-coronavirus-essential-retail-shut-down-open |url-status=live}}</ref><ref name=essential/> An employee of a GameStop store in [[Athens, Georgia]] (which was shut down on March 20 by order of the police to comply with a similar order in [[Athens β Clarke County metropolitan area|Athens-Clark County]]) disputed the argument, saying that the high-end, gaming-oriented peripherals (such as keyboards and mice) sold at GameStop were not necessarily essential for remote work, and that cheaper alternatives were readily available at stores allowed to remain open, such as [[Walmart]].<ref name=outraged/> [[California]] had announced a state-wide stay-at-home order on March 19; while GameStop had originally stated to its stores it was an essential retail business, by March 20 GameStop instead decided to close down its California branches, while keeping most other nationwide stores open.<ref>{{Cite news | url=https://www.theverge.com/2020/3/20/21188799/gamestop-california-store-closures-indefinite-coronavirus | title=GameStop to close all California stores indefinitely | last=Lyles | first=Taylor | website=[[The Verge]] | date=March 20, 2020 | archive-date=April 8, 2020 | archive-url=https://web.archive.org/web/20200408220811/https://www.theverge.com/2020/3/20/21188799/gamestop-california-store-closures-indefinite-coronavirus | url-status=live}}</ref><ref name=outraged>{{Cite news |url=https://www.cnn.com/2020/03/20/tech/gamestop-open-essential-business/index.html |title=GameStop says it's an essential business. Employees are outraged |last=Liao |first=Shannon |website=[[CNN]] | date=March 20, 2020 |archive-date=April 8, 2020 |archive-url=https://web.archive.org/web/20200408220812/https://www.cnn.com/2020/03/20/tech/gamestop-open-essential-business/index.html|url-status=live}}</ref> Following similar stay-at-home orders in [[New York (state)|New York]] and [[Illinois]] over the following days, GameStop announced that it would close all locations effective March 22, with selected locations continuing to offer contact-free curbside pickup (where an employee, wearing either gloves or a bag over their hands, would slip the customer's order through the front door, remaining behind the glass)<ref name=bags>{{Cite news |url=https://www.bostonglobe.com/2020/04/03/business/after-instructing-employees-wrap-their-hands-plastic-bags-go-back-work-gamestop-shuts-down-mass-stores/ |title=After instructing employees to wrap their hands in plastic bags and go back to work, GameStop shuts down Mass. stores | website=[[The Boston Globe]]| date=April 3, 2020 | last=Johnston | first=Katie | archive-date=November 24, 2020 | archive-url=https://web.archive.org/web/20201124234113/https://www.bostonglobe.com/2020/04/03/business/after-instructing-employees-wrap-their-hands-plastic-bags-go-back-work-gamestop-shuts-down-mass-stores/|url-status=live}}</ref> and home delivery.<ref>{{Cite news | url=https://arstechnica.com/gaming/2020/03/does-gamestop-really-need-to-be-open-during-the-coronavirus-pandemic/ | title=GameStop shuts down regular operations amid coronavirus closures | last=Orland | first=Kyle | website=[[Ars Technica]] |date=March 22, 2020 | archive-date=April 8, 2020 | archive-url=https://web.archive.org/web/20200408220816/https://arstechnica.com/gaming/2020/03/does-gamestop-really-need-to-be-open-during-the-coronavirus-pandemic/ | url-status=live}}</ref> In early April 2020, a location in [[Dorchester, Boston]] received a nuisance citation by local police, who deemed the curbside pickup a violation of the [[Massachusetts]] stay-at-home order. GameStop subsequently ceased offering curbside pickup in the state.<ref name=bags/><ref>{{cite web | url=https://www.polygon.com/2020/4/5/21208658/gamestop-coronavirus-shutdown-essential-business-employees-boston-massachusetts | title=Boston authorities shut down GameStop and stores close statewide | date=April 5, 2020 | work=[[Polygon (website)|Polygon]] | first=Owen | last=Good | archive-date=January 27, 2021 | archive-url=https://web.archive.org/web/20210127231033/https://www.polygon.com/2020/4/5/21208658/gamestop-coronavirus-shutdown-essential-business-employees-boston-massachusetts | url-status=live}}</ref> =====Canadian division pandemic response===== GameStop's Canadian subsidiary EB Games faced similar criticism on March 20 as well, as morning lineups for the new ''Animal Crossing'' and ''Doom'' games at a Toronto location induced large public gatherings discouraged by officials. The city's public health chief Eileen de Villa stated that the gathering did not "line up with what we expect from those in our community who are interested in protecting and strengthening our community". [[Mayor of Toronto|Mayor]] [[John Tory]] accused the company of "placing commerce above the public interest", while [[Premier of Ontario]] [[Doug Ford]] stated that "everyone in this province has a responsibility to make sure we protect each other and I am very, very disappointed in the store owner that would do this". EB Games later announced that it would close all Canadian stores on March 21.<ref>{{Cite web|url=https://www.thestar.com/business/2020/03/20/ford-frustrated-as-dozens-line-up-for-eb-games-launch-despite-pandemic.html|title=EB Games to close Saturday, as Ford fumes while dozens line up for launch, despite pandemic|date=March 20, 2020|website=Toronto Star|language=en|access-date=March 21, 2020|archive-date=April 8, 2020|archive-url=https://web.archive.org/web/20200408220817/https://www.thestar.com/business/2020/03/20/ford-frustrated-as-dozens-line-up-for-eb-games-launch-despite-pandemic.html|url-status=live}}</ref> =====Australian division pandemic response===== [[File:EB Chermside.jpg|200px|thumb|An EB Games store from GameStop's Australian division located in [[Westfield Chermside]], [[Brisbane]], [[Australia]] in 2022]] GameStop's Australian subsidiary [[EB Games Australia]] was the only arm of the global GameStop business not to report huge COVID-related losses, with sales instead soaring by 30 per cent. In Australia COVID-19 lockdowns were managed by the [[Australian Federal Government]] [[National Cabinet]] which largely permitted retail stores to remain open with capacity limits in place.<ref>{{Cite web |title=A timeline of Covid-19 in Australia, two years on |url=https://www.timeout.com/melbourne/things-to-do/a-timeline-of-covid-19-in-australia-two-years-on |access-date=2022-06-30 |website=Time Out Melbourne |language=en-AU}}</ref> This meant, unlike other arms of the GameStop business, the Australian arms stores remained open for the substantial majority of the pandemic. National Cabinet only mandated some brief regionally targeted entire store closures with stores in the Australian state of [[Victoria (Australia)|Victoria]] being the most heavily impacted. For fiscal year 2020 the Australian arm reported [[net sales]] of US$625.3 million and operating earnings of US$52.2 million. This was an increase of US$42.8 million in operating earnings compared to the pre-pandemic Fiscal Year 2019 where the company posted net sales of US$525.4 million and operating earnings of US$9.4 million.<ref name="2020-10K"/>
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