GameStop Closes Hundreds of Stores Amid Decline

GameStop is facing a significant reduction in its physical footprint, signaling a potential shift in the company's long-term viability. According to recent reports, the retailer abruptly shut down 400 stores across the United States late last week. This move comes on the heels of a difficult fiscal year where the company shuttered 590 US stores in fiscal 2024, which ended in January of 2025.

Furthermore, the company has stated in SEC filings that it plans to end operations for hundreds of remaining international stores across Canada, Australia, and Europe in the coming months. As of February 1, 2025, GameStop maintained just over 3,200 stores worldwide. However, this number represents a steep decline from the nearly 6,000 locations the company operated in 2019, including nearly 4,000 in the US alone. While the company remains a going concern for now, the long-term trend of store closures suggests a challenging road ahead for the video game and Funko Pop retailer.

The GameStop retail chain has initiated a massive wave of store closures, shutting down 400 locations across the US in a single move. This decision was reported late last week and marks a significant acceleration in the company's downsizing efforts. The closures are not isolated to the current quarter, as the company has been struggling with its physical retail model for some time.

In addition to the recent 400 closures, SEC filings indicate that the company shuttered 590 US stores during fiscal 2024. The fiscal year concluded in January of 2025, suggesting that the pressure on the company's brick-and-mortar operations has been intensifying over the past year. The retailer is also looking to exit international markets entirely, with stated plans to close hundreds of remaining stores in Canada, Australia, and Europe.

The current wave of closures is the latest chapter in a long-term decline for the video game retailer. Just a few years ago, the company's footprint was significantly larger. As of 2019, GameStop operated nearly 6,000 locations worldwide. Within that total, nearly 4,000 stores were situated within the United States.

By comparison, as of February 1, 2025, the company reported having just over 3,200 stores globally. This represents a reduction of nearly half of its global footprint over a six-year period. The trend highlights the difficult transition facing physical media retailers in an increasingly digital marketplace.

Despite the significant number of closures, GameStop is not immediately facing insolvency. The company still maintains a substantial operation with just over 3,200 stores worldwide as of early 2025. This scale ensures that the company remains a going concern for the immediate future, meaning it has the resources to continue operations.

However, the sheer volume of planned closures suggests that the company's leadership is reacting to sustained financial pressures. The combination of 590 US closures in fiscal 2024, the recent 400 store shutdowns, and the impending international pullout points to a strategic retreat to stabilize the business.

The current situation stands in contrast to the company's resilience during the meme stock mania. For five years, the retailer enjoyed a period of relevance and financial support driven by retail investors. This surge in interest helped prop up the company's finances and delayed the decline that analysts had predicted years ago.

Six and a half years ago, observers noted that the company seemed on the verge of 'imminent demise' following a failed corporate sale attempt, massive financial losses, and the departure of key staff. The meme stock phenomenon extended the company's life, but the recent closures suggest that the underlying business challenges remain unresolved.