GameStop is reportedly closing hundreds of stores across the United States, affecting over 400 locations this January, which is significant as it represents 20-25 percent of all GameStop outlets nationwide. This mass closure comes as CEO Ryan Cohen aims for a $35 billion pay packet linked to reaching a $100 billion market cap, a tenfold increase from its current valuation. The abrupt closures have surprised many employees, even those at high-performing stores. Alongside US store closures, GameStop is also considering reducing operations at its EB Games subsidiary in New Zealand. This move follows similar closures in countries like Ireland, Germany, and Austria, indicating a troubling trend for the retailer's physical presence.
What factors are leading to GameStop's store closures?GameStop's store closures are driven by its strategic shift under CEO Ryan Cohen, who is attempting to elevate the company's market cap significantly while also restructuring to adapt to changing retail conditions, especially in the digital age. This has resulted in a significant downsizing of its physical stores.
GameStop has long been a staple of the video game retail landscape, providing gamers with physical copies, collectibles, and trade-in opportunities. However, the shift towards digital gaming and online purchases has challenged its traditional business model, prompting the need for significant adaptations and reductions in its brick-and-mortar presence.
Jordan Keats
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Comments
Man, it's tough seeing the physical game store era fade, but you gotta respect the hustle behind that ambitious market cap goal. Just hope the employees land on their feet amidst all this restructuring.
It's wild to see such an iconic brand pivot so drastically, but honestly, the shift to digital was inevitable. Still, losing that in-person gaming community vibe hits different.