Restocking of Sony Corporation (NYSE: SNE) and Microsoft Corporation’s (NASDAQ: MSFT) PlayStation 5 and latest Xbox consoles left Gamestop Corporation’s (NYSE: GME) employees surprised, Bloomberg reported Monday.
What Happened: The employees were given little notice of the fresh stock, which led to chaotic crowds at Gamestop locations posing a potential health risk amid the ongoing pandemic, according to Bloomberg.
A GameStop manager reportedly shared a company email sent to the store minutes before the public announcement that indicated the location would have 15 new consoles available for pre-order. However, minutes after the announcement, a crowd of 40 appeared at the store, violating social-distancing norms.
GameStop employees are sharing similar woes on Reddit, with one manager writing they had “ZERO warning” and calling the situation a “fiasco.”
The retailer said the last-minute notification was sent to ensure that individuals — not resellers — purchase the consoles.
“We realize that in some situations our approach of notifying customers of this opportunity may have caused unintended reactions from both our associates and customers,” the Texas-based game retailer said.
Why It Matters: GameStop has shut 700 stores this year and expects to close more through 2022 as it attempts to trim costs, noted Bloomberg.
Chewy and RC Ventures Founder Ryan Cohen called for a strategic review of the brick-and-mortar video game retailer and lambasted management for its 20th-century mindset while suggesting the firm duel with Amazon.com, Inc (NASDAQ: AMZN) for a share of the e-commerce market.
GameStop isn’t the only retailer reeling from the fallout of the shortage of the newest consoles.
Price Action: GameStop shares closed nearly 4.3% lower at $12.72 on Monday.
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