George Sherman, Chief Executive Office (CEO) of GameStop since April 2019, will be stepping down from his position this year as part of wider company changes. This transition will be effective on July 31st or earlier if an appropriate successor can be found.
GameStophas been making widespread changes to its executive landscape over the past handful of months to adjust its corporate strategy. Numerous members of the Board of Directors have retired, the company’s Chief Financial Officer and Chief Customer Officer recently left, and nowthe company is seeking a new CEO.
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The Board of Director’s Strategic Planning and Capital Allocation Committee has been trusted with the search for a replacement CEO candidate. The company is looking for individuals that have the right capabilities to “help accelerate the next phase of the Company’s transformation,” according to the release.As to what that transformation exactly entailsisn’t mentioned in the statement but it seems likely that this is part of the company’s focus on e-commerce. The announcement came out today, April 19th, and Sherman will stay on board with GameStop until a candidate can be found that can assist with that shift in focus.
Judging by the wording of this announcement this is likely an amicable transition as both Sherman and incoming Chairman of the Board Ryan Cohen exchange pleasantries about Sherman’s tenure at the company. Cohen,the former CEO of the online realtor Chewy, is being tapped to remake the executive landscape of GameStop. Likely Cohen wants to fill the position with a candidate of his own choice to ensure his vision for the company goes as planned. It remains unclear how many more changes will come during this transition period but for now the search for a new CEO is ongoing.
The dramatic andwidespread changes that GameStop has undergoneare definitely cause for some concern with the 37 year old company. This is a tumultuous time and a lack of stability could end up being their downfall as it is unclear when this phase of executive change is going to end.
But, as seen with the Reddit drama, many people are betting on GameStop to come out on the other side of this change with a much more stable foundation. Shifting from the traditional brick-and-mortar store sales model to an online one makes more and more sense by the day. Ideally for those invested in the company, the CEO that follows Sherman fits Cohen’s model and the two can finally move forward with their plans to reshape the video game retailer.
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