Specialty gaming retailer GameStop is planning to shutter an undisclosed number of stores during fiscal year 2025, ending in February 2026.
In an SEC filing submitted by the company, GameStop stated it was reviewing its store portfolio and closing underperforming store locations.
The retailer blamed the market shift to more digital-based gaming products and increased competition from chain retailers as the reason for its downsizing and financial struggles.
The company wrote in the SEC filing: “The retail environment is intensely competitive and subject to rapid changes in consumer preferences and frequent new product introductions.
“We compete with mass merchants and regional chains, including Walmart and Target, computer product and consumer electronics stores, including Best Buy, and other United States and international gaming.”
The news follows a weak performance in 2024, with net sales falling by 27.5% to $3.8 billion compared to $5.3 billion in the year prior. Sales also dropped over the holiday season, declining by 28.5% to $1.3 billion.
GameStop previously closed approximately 600 stores across the US in fiscal year 2024, as it struggled to stay afloat.
During 2024, stores also closed in Ireland, Switzerland, Austria, and Germany. As a part of its store closure plans, the company will sell its Canadian and French retail operations.
Moving forward, the company is investing in Bitcoin as one of its digital assets following approval from the retailer’s board.
GameStop has not set a definitive number of cryptocurrencies that it plans to acquire and is not limited to any amount.
Founded in 1980, GameStop operates a total of around 3,200 stores in the US, Canada, Australia, and Europe, with over 2300 stores in the US.
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