Sony Corporation (ADR) (NYSE:SNE)’s PlayStation 3 also sold around 77 million units as of May 2013. Around half of these units were sold through GameStop Corp. (NYSE:GME). With the announcement of PlayStation 4, the company expects higher growth than with the previous version. The PlayStation 4 will be released by the end of this year. GameStop has already received orders from more than 1.2 million customers for PlayStation 4. Ascendiant Capital Markets expects that PlayStation 4 will sell around10 million unitsnext year. With the release of PlayStation 4, GameStop Corp. (NYSE:GME) expects its new software segment revenue to increase from $703 million in the first quarter to $1.6 billion in fourth quarter of 2013.
Opening of new stores within existing ones and merger of two sites
Best Buy Co., Inc. (NYSE:BBY) announced in June that it will open Microsoft Corporation (NASDAQ:MSFT) Windows shop-in-shops. Around 500 Microsoft stores will be opened within existing Best Buy Co., Inc. (NYSE:BBY) stores of the U.S. and 100 in Canada. Microsoft owns only 68 stores in North America and hence, it is teaming up with Best Buy. These stores will get a floor space of 2200 square feet and will feature Windows-based smartphones, laptops, and ultrabooks. Microsoft has sold 100 million copies of Windows 8 since its launch and expects to reach 500 billion by next year.
Best Buy Co., Inc. (NYSE:BBY) is also planning to merge its growing “Reward Zone” website with BestBuy.com to increase online sales. Reward Zone awards points to shoppers who write posts about their purchases on Facebook and Twitter. These points can later be used to obtain discount rates. With this, the company will be able to integrate these posts on BestBuy.com. Best Buy Co., Inc. (NYSE:BBY) expects that positive posts and recommendations will influence new shoppers as well. BestBuy.com registered around 1billion visitors in the fiscal year 2012. The merger will add 40 million visitors from Reward Zone to BestBuy.com.
From both initiatives, the company expects revenue to increase from $9.38 billion in the first quarter of 2013 to $14.7 billion in the fourth quarter of 2013.
Conclusion
Conns increased its number of stores and expanded spaces will be allocated to its growing furniture and mattress segment. It is also developing its credit services. These optimistic factors will be responsible for long term growth.
GameStop expects growth in two of its major segments, which are its used video games segment and new software segment.
Best Buy Co., Inc. (NYSE:BBY) is following the growth trends of the above two companies. The company anticipates growth from Microsoft’s shop-in-shops and the merger of its Reward zone site with BestBuy.com.
Due to strong growth factors in all the above companies, I recommend a buy for each.
Madhukar Dubey has no position in any stocks mentioned. The Motley Fool owns shares of GameStop.
The article 3 Retail Stores Adapting for Success originally appeared on Fool.com and is written by Madhukar Dubey.
Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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