For GameStop (NYSE: GME), nothing good can come of Five Below (NASDAQ: FIVE) entering the esports market. The tween and teen retailer announced it will be building a handful of new stores next year that are connected to Localhost gaming centers -- and if the first round is successful, there will be as many as 70 more gaming-connected stores being built over the next few years.
As attracting gamers to its stores by creating its own gaming centers is how GameStop is planning to survive, the infiltration of Five Below into the market could be a death knell for the video game specialist.
Image source: Nerd Street Gamers.