GameStop Business Quality Report (GME)

GameStop is a specialty retailer focused on the video game marketplace. This GameStop Business Quality Report explains the Bad Quality ranking that GameStop received under my quality ranking system.

Basic Company Information

• Company Name: GameStop

• Ticker: GME

• Quality Ranking: Bad (2)

• Primary Reason: Declining Business

• Size: Mid-Cap

• Last Updated: 10/28/2018

Key Points:

1. Profitable but declining earnings.

2. GameStop operates in the highly competitive retail industry

3. Lack of Pricing Power

4. GameStop has established a niche market in used video games.

5. High Margin Collectibles Business

GameStop Business Quality Description

GameStop is a niche retailer that faces substantial competition. They sell new and used video game software and hardware. GameStop is the only company specializing in the used portion of this business. As the category killer of this industry, GameStop has some advantages. However, they face price competition from online sellers like Amazon and eBay. Also, other physical retailers like Best Buy and Walmart practice heavy discounting.