Friday January 20, 2006 1:37 pm
Trouble NOT Brewing at Gamestop?
On Wednesday, we reported of rumored trouble at Gamestop that involved descriptions of mechanisms being used to cut costs and raise profits. As it turns out, that initial rumor may be out of line. According to another Gamestop manager, the manager in the original report was incorrect.
Here’s what the second manager has to say.
“I question the opinions of my colleague for several reasons. The first is his statement about ‘protecting profits.’ The fact of the matter is that this company, like many others, does enter a period of profit protection when sales are expected to drop. This early part of the year is traditionally one of the slowest for sales, so the company must make necessary cuts in order balance this out. While it is true that our payroll hours have taken a bit of a dip, I have seen no indication that managers must work extended hours. In fact, our schedules pretty much went back to what they were prior to the holiday season.”
As we all know, the video game industry sees a bulk of sales leading up to the holiday season and sales tend to drop way off at the beginning of the new year. Naturally, Gamestop executives have come to understand their business’s sales cycle and are in fact attempting to cut costs and raise profits - according to this second manager, the execs are attempting to do so in a proper way.
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