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

Core Insights - GameStop plans to close a "significant number" of stores in fiscal 2025 following the closure of 970 stores in fiscal 2024 as part of its strategy to achieve sustained profitability [1][4] Store Closures - In fiscal 2024, GameStop closed 590 stores in the U.S., 336 in Europe, 33 in Australia, and 11 in Canada [2] - The company exited operations in Ireland, Switzerland, and Austria during fiscal 2023, closed its store operations in Germany, and sold its Italian subsidiary in the fourth quarter of fiscal 2024 [2] - As of February 1, 2024, GameStop had a total of 3,203 stores, with 2,325 located in the U.S. [3] Store Portfolio Optimization - GameStop has initiated a comprehensive review of its store portfolio to identify closures based on market conditions and individual store performance, which led to the closure of 590 stores in the U.S. in fiscal 2024 [4] - The company anticipates closing a significant number of additional stores in fiscal 2025 as part of this ongoing review [4] Strategic Focus - GameStop is focused on optimizing its cost structure and establishing "omnichannel retail excellence" while expanding its market by adding new product and service offerings, including graded collectibles [4] - The company is adapting to the rise of digital distribution and changing consumer behavior in the gaming retail industry [5] - GameStop has partnered with Zip to offer a buy now, pay later (BNPL) option for customers and has added bitcoin as a treasury reserve asset [5]