Reuters - After almost four months of phone calls and emails to GameStop Corp complaining about the slow shipping of an order, New Jersey teacher Steven Titus received a late night call in early March - from a director on the video game retailer's board. On the line was Ryan Cohen, the billionaire co-founder and former chief executive of online pet supplies retailer Chewy who is now leading GameStop's push into e-commerce.
Cohen was responding to an email Titus had sent 12 hours earlier to more than two dozen GameStop executives and board members. E-commerce requires a customer support team and processes that are responsive," Titus wrote.
Let me get to the bottom of this," Cohen told Titus. Cohen then asked GameStop's new customer service chief Kelli Durkin, who spearheaded initiatives at Chewy that included written personal notes to customers, to look into the matter. Titus was reimbursed for his purchase, even though he had not requested a refund and was only complaining about the tardiness of his order. The anecdote, described by Titus and GameStop insiders, is representative of the intensity Cohen has brought to the Grapevine, Texas-based company as he pursues an against-the-odds transformation of the brick-and-mortar retailer into an e-commerce firm that can take on big-box retailers such as Target Corp and Walmart Inc and technology firms such as Microsoft Corp and Sony Corp.
Since Cohen joined GameStop's board in January, the year-old entrepreneur has been obsessing about customer service, contacting customers late into the night to solicit feedback, and has made a push to upgrade the company's website and online ordering system, eight people who work with or know Cohen said in interviews.
Cohen aims to turn GameStop into the "Chewy of gaming" with lower prices, better selection and faster delivery times, said the sources, most of them speaking on condition of anonymity. Wall Street analysts are doubtful Cohen - a college dropout who says he learned the ins and outs of business from his late father, who was a glass importer - can win back GameStop customers who have become accustomed to streaming video games.
Some are struggling to understand why the creator of the world's most valuable online pet supplies store would take on a moribund video game retailer as a turnaround project. The sources said Cohen's efforts are driven by a belief that video game lovers will turn to a dedicated internet shop just as pet lovers turned to Chewy. Cohen invested in GameStop last year before the stock became a social media sensation.
Wall Street is watching his every move. The ouster of GameStop's chief financial officer last month, which Cohen pushed for, was enough to revive a rally in its shares.
Investors monitor Cohen's every tweet, trying to make sense of what seemingly unrelated memes like frogs and ice cream cones mean for GameStop. Many of Cohen's investment plans for the company require more capital. Unlike Chewy, GameStop cannot rely on fundraising from California's Silicon Valley, yet it could raise hundreds of millions of dollars by seizing on its elevated share price to sell stock.
GameStop will be legally allowed to do that once it reports its fourth-quarter results, which are scheduled to be released on Tuesday. None of the sources close to Cohen would comment on whether GameStop would seek to raise capital soon. GameStop declined to comment on the matter.
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