The largest video game retail chain in the United States, GameStop, is planning to close several hundred stores. Last year, it shut down nearly 600 locations. A list detailing 410 stores slated for imminent closure has surfaced, with another 11 stores remaining unconfirmed. It remains unclear whether any locations outside the U.S. will be shuttered, but it is entirely possible. The company stated last year that it closed 590 locations and anticipated a considerable number of closures in the fiscal year 2025. This comes as part of an extensive review to optimize the store portfolio.
According to media reports, the employees who have lost their jobs are doubly discontent because GameStop recently announced a stock option bonus for its current CEO, Ryan Cohen, contingent on achieving certain targets, amounting to bonuses up to $35 billion. GameStop is a cult chain with several thousand stores worldwide. In 2023, a movie titled «Dumb Money», focusing on the company’s stock price manipulations in 2021, even hit the screens.
Amidst these developments, Ryan Cohen appears to be steering GameStop toward a digital refocusing. In recent months, he has been advocating for increasing online sales and diversifying the product offerings beyond gaming. However, this ambition interacts with cynical market perceptions, given the company’s turbulent past with stock market fluctuations. Moreover, investors and employees are closely watching the strategic shake-up as it could reshape retail paradigms for the gaming industry, potentially impacting competitors.
