GameStop to close over 400 stores in 42 states at the start of 2026

GameStop, a well-known retailer, is starting off 2026 by announcing the closure of more than 400 stores located in 42 different states. This move is part of the company’s strategy to reduce costs and improve profitability, as its CEO, Ryan Cohen, aims to potentially earn $35 billion in stock options if GameStop hits a $100 billion market cap.

In recent years, GameStop has faced numerous challenges, but it appears that the company has managed to turn its fortunes around. Despite this positive development, the decision to close down stores will result in thousands of employees losing their jobs. At the same time, the CEO stands to benefit significantly if the company’s market cap reaches the desired level.

Since fiscal year 2024, GameStop has been closing down stores as a cost-cutting measure. The company closed 590 stores during that period and has indicated in an SEC filing that it plans to close even more stores during fiscal year 2025. With the fiscal year ending on January 31st, it seems that GameStop is on track to achieve this goal by closing over 430 stores this month.

As of Sunday, January 11th, the planned closures amount to 435 stores spread across 42 states. This represents a significant reduction in the company’s retail presence compared to February 2025 when GameStop operated 2,325 stores in the US. Additionally, GameStop has been winding down its international operations, having already exited several countries like Canada, Germany, Austria, Ireland, Switzerland, and Italy. The company is also planning to leave France within the next 12 months.

While the store closures signal a shift in GameStop’s operational strategy, the move will undoubtedly have an impact on the retail landscape and employment opportunities in the affected regions. As GameStop continues to navigate its financial goals and restructuring efforts, it remains to be seen how these changes will shape the company’s future trajectory in the gaming and retail industry.

GameStop has not provided any official comments regarding these developments. As the company moves forward with its plans, it faces both challenges and opportunities in reshaping its business model and adapting to the changing retail landscape. The closure of stores is just one aspect of GameStop’s broader strategy to drive growth and profitability in a highly competitive market.