GameStop to Close ‘Significant Number’ of Stores in Cost-Cutting Effort

GameStop said it expects to close a “significant number” of stores in fiscal 2025 after closing 970 stores in fiscal 2024.

The plan is part of the retail gaming destination’s ongoing evaluation of its international assets and operations aimed at achieving sustained profitability, GameStop said in a Form-10K filed Tuesday (March 25) with the Securities and Exchange Commission (SEC).

During fiscal 2024, GameStop closed 590 stores in the U.S., 336 in Europe, 33 in Australia and 11 in Canada, according to the filing.

The company also exited its operations in Ireland, Switzerland and Austria during fiscal 2023; closed its store operations in Germany and sold the Italian subsidiary that operated its Italian stores and eCommerce business during the fourth quarter of fiscal 2024; and, on Feb. 18, announced that it plans to sell its operations in France and Canada, the filing said.

As of Feb. 1, the end of fiscal 2024, GameStop had 3,203 stores, 2,325 of which were in the U.S., per the filing.

“We have also initiated a comprehensive store portfolio optimization review which involves identifying stores for closure based on many factors, including an evaluation of current market conditions and individual store performance,” the company said in the filing. “This review, among other things, resulted in the closure of 590 stores in the United States in fiscal 2024. While this review is ongoing and a specific set of stores has not been identified for closure, we anticipate closing a significant number of additional stores in fiscal 2025.”

Together with its effort to optimize its cost structure, GameStop is focused on establishing “omnichannel retail excellence” and expanding its addressable market by adding new product and service offerings, including graded collectibles, according to the filing.

GameStop has been facing challenges as it adjusts to the rise of digital distribution and changing consumer behavior in the gaming retail industry PYMNTS reported in December.

It was reported March 3 that the company partnered with Zip to offer a buy now, pay later (BNPL) option to GameStop customers.

On Tuesday, GameStop announced that its board voted unanimously to add bitcoin as a treasury reserve asset.