Dive Brief:
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GameStop on Monday said that CEO George Sherman will give up that role on July 31 or earlier if the company finds his replacement before then. Sherman took the job two years ago.
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The news follows turnover at the beleaguered retailer that has included the appointment of Jenna Owens, a veteran of Amazon and Google, as chief operating officer; new hires to lead its supply chain and e-commerce systems; the late March departure of its CFO; and a board shakeup.
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Amid head-spinning share price swings last month, the company also unveiled a turnaround plan that includes technology investments, expanded product offerings and modernized fulfillment operations, among other initiatives.
Dive Insight:
Gamers' growing use of streaming services, less a trend than a permanent shift, has hit GameStop hard. Activist investors earlier this year began pushing the retailer to be more proactive in this environment, leading it to beef up its board with DTC veterans formerly at Chewy.
The search to fill the next two empty executive spots will probably be conducted in similar territory, according to Telsey Advisory Group analysts led by Joseph Feldman.
"GameStop's next CEO and CFO are likely to come from the tech industry, as with the other recent senior hires, and would require a wide range of strategic and operational experience, given GameStop's complex business model, including ~4,800 global stores, digital, used games, new software and hardware, and collectibles," according to a Telsey client note Monday.
Still, the retailer has some gusts of wind at its back. The company is poised to benefit from the latest gaming cycle, with steep demand for the latest Microsoft and Sony consoles, for example, along with its new board hires and healthy balance sheet, according to Telsey analysts.
