It’s a game changing move.
GameStop Corp. has announced plans to shut down a significant number of its underperforming stores as part of a broader effort to streamline operations. The company, which operated over 3,200 stores worldwide as of early 2025, aims to optimize its core business and focus on profitability. This decision comes amid a shifting retail landscape where several national chains have also been reducing their store footprints to adapt to changing consumer trends.
In addition to closing stores, GameStop has revised its investment strategy to include Bitcoin as part of its treasury reserve assets. The company’s board has approved allocating a portion of its cash reserves or future financial issuances toward cryptocurrency. To oversee this initiative, an Investment Committee has been formed, led by CEO Ryan Cohen and two independent board members. This move reflects GameStop’s strategy to diversify its financial holdings and enhance shareholder value.
Financially, the company reported an increase in cash reserves, reaching nearly $4.8 billion, significantly higher than the previous year. Fourth-quarter profits more than doubled, even though overall annual sales declined due to store closures and international divestitures. GameStop has also warned that potential changes in tariffs and trade regulations could impact its supply chain and profitability, given its reliance on imported products.
GameStop’s decision aligns with a larger industry trend of retailers downsizing to remain competitive. Other companies, such as Denny’s and Kohl’s, have also announced store closures to improve efficiency and profitability. The company continues to explore ways to expand its market presence, particularly in high-margin product categories like collectibles. However, it did not hold a traditional earnings call following its financial report, instead providing details through its SEC filing.
