GameStop plans to exit even more stores this year.
And instead of saving its struggling stores, the video game retailer is turning its focus to cryptocurrency trades. So far, Wall Street loves the move.
GameStop shuttered a shocking number of businesses in the past year, slashing over 1,000 global shops and more than 300 last year.
But its not done.
The company said it plans to continue to close a ‘significant number’ of stores throughout 2025 in a recent regulatory filing, though specific locations have ‘not been identified for closure.’
GameStop once boasted 6,000 international storefronts, selling video games, used gaming consoles, and gamer accessories.
The headcount has dwindled precipitously, dropping to just over 2,300 stores today.
Previously, the CEO, Ryan Cohen, said the brand was looking to close some international stores because of ‘wokeness and DEI.’
GameStop said it will close a ‘significant number’ of stores this year
Shoppers have increasingly turned away from brick-and-mortar stores for their gaming needs.
Online stores – like Steam, PlayStation Store, and Xbox Store – have given customers the option to customize and play games with immediate downloads and purchases, instead of relying on trips to physical stores.
‘The core business of GameStop is challenged,’ Neil Saunders, the managing director of retail at GlobalData, told DailyMail.com
‘The writing has been on the wall for a long time and it can be seen in the poor sales numbers coming from GameStop.’
Nevertheless, the stock price was boosted by the Bitcoin updates, as investors increased the company’s stock price by 15 percent the day after the announcement.
The Bitcoin pivot is yet another unique strategy that has kept the retailer in the headlines and complicated its business outlook.
‘The pivot to bitcoin is really a defense against irrelevance,’ Saunders added.
‘It’s an odd thing as it’s basically saying the strategy isn’t retail but to act as some kind of cryptocurrency investment vehicle. However, GameStop has many corporate fans and the move seems to have been well received.’
The gaming retailer has already shuttered thousands of stores in the past couple years
Gamers have turned to online platforms to buy their video game needs
Read More
Macy's announces store is shutting down for good in a matter of DAYS
In 2021, the company was the center of a ‘memestock’ crazy, with thousands of amateur investors flooding the company with millions of dollars of stock purchases.
The investors, who mostly convened on Reddit threads like r/WallStreetBets, were motivated to buoy nostalgic brands that had struggled through the pandemic.
The influx sent Cohen, the former Chewy.com CEO and a Reddit fan-favorite, into GameStop’s top position in 2023.
The stock surge lifted the company’s once-depleted finances, but has yet to translate into a long-term, sustainable business model.
Analysts are skeptical: Michael Pachter told Yahoo News he is not confident in yet another strategic shift after the company has changed business plans ‘about six times in three years.’
Meanwhile, GameStop joins a list of retailers that are quickly closing hundreds of stores this year as shoppers turn away from their aging brands.
Macy’s, Kohl’s, and Dollar General have all announced plans to shutter storefronts.
Analysts predict a record 15,000 stores will close this year.