Key Facts
- ✓ GameStop is closing over 430 stores in 42 states.
- ✓ CEO Ryan Cohen is eligible for $35 billion in stock options if the company hits a $100 billion market cap.
- ✓ The company closed 590 stores in fiscal year 2024.
- ✓ GameStop anticipates closing a significant number of additional stores in fiscal year 2025.
- ✓ The fiscal year ends on January 31st.
Quick Summary
GameStop is initiating 2026 with a massive reduction in its physical footprint, planning to close over 430 stores. These closures are occurring across 42 states and represent a strategic effort to cut operational costs. The timing is critical, as the fiscal year is set to conclude on January 31st.
The primary financial driver behind this decision is the compensation structure for CEO Ryan Cohen. Cohen stands to potentially earn $35 billion in stock options, a payout that is strictly tied to the company reaching a $100 billion market cap. Closing underperforming stores is a primary method the company is using to streamline expenses and boost profitability. This follows a trend of consolidation, with the company having already closed 590 stores in fiscal year 2024.
Strategic Closures and Financial Targets
The decision to shutter hundreds of locations is rooted in the company's broader financial restructuring. GameStop has explicitly outlined its intention to reduce its physical retail presence to improve its bottom line. In a recent filing with the SEC, the company stated it anticipates "closing a significant number of additional stores in fiscal 2025."
Current tracking indicates that the company is moving quickly to meet these goals before the fiscal year concludes. As of early January, reports indicate that GameStop has already shuttered or is in the process of closing more than 430 locations. This rapid execution suggests a focused effort to maximize cost savings within the current fiscal period.
The financial stakes are high for the company's leadership. The potential $35 billion stock option package for CEO Ryan Cohen serves as a powerful incentive to drive the stock price upward. Reaching the $100 billion market cap threshold is the specific benchmark required to unlock this compensation.
"closing a significant number of additional stores in fiscal 2025."
— GameStop SEC Filing
Scope of the Reduction
The scale of the store closures is significant, affecting a vast majority of the company's operational regions. The closures are taking place in 42 states, indicating a nationwide strategy rather than a targeted regional pullback.
While the company has not released a specific list of closing locations, the consolidation effort is being monitored by industry observers. The reduction in store count follows a pattern established in the previous fiscal year, where 590 stores were closed. The cumulative effect of these closures represents a major shift in GameStop's retail strategy as it attempts to adapt to changing market conditions and financial objectives.
Conclusion
GameStop is executing a rapid and widespread reduction of its retail locations to meet aggressive financial targets. With over 430 stores closing across 42 states, the company is prioritizing cost-cutting measures to achieve a $100 billion market cap. This valuation is the key to unlocking CEO Ryan Cohen's potential $35 billion stock option package. As the fiscal year deadline of January 31st approaches, the company continues to streamline its operations in pursuit of these high-value financial goals.
