Logistics is hard, make no mistake, but having done this for years now, either hire an outside consultant who has experience in growing small to medium internet based systems or partner with a professional distribution agent.
No real excuse for it at this point; the timeliness of releases getting to LRG's warehouse is its own matter, but once product is in hand, reducing inventory on hand and handling times are both massive cost savings for a company. It's literally a win-win to improve your materials processing to get inventory off shelves and into the hands of happy customers.
Doug seemed like he wanted to express that they're improving, but all his responses were "talk the talk, but can't walk the wall." Still feels like the "My First Business" level of capabilities when they're trying to paint themselves as a premiere company defining their market sector.
And again, expending resources on opening a physical store (because they wanted to?) instead of investing that time and effort to correcting the in-house management issues is still incredibly dumb, no matter how much it makes the company owners have a warm fuzzy being game store owners now, too.
Doug didn't seem to quite process opportunity cost and ensuring your core business is ship shape before creating new ventures, but what do I know, I'm just some random internet dude with absolutely no background in large, market driven acquisitions involving both small, medium, and large (international) based businesses? (this is sarcasm)
They're lucky they have Gamers™ as their fanbase, as well as collectors and flippers (still?), a bunch of irrational , particularly whiny, but still subservient lot as their core customer base. As long as they don't commit any major sin (looking at you WotC!), their customer floor of people who will order just about anything (ex. Bill & Ted) is going to remain pretty high.