GameStop is starting 2026 with another major round of store closures, continuing a years-long effort to shrink its physical footprint. According to reports tracking the shutdowns, the retailer plans to close about 435 stores across 42 U.S. states. That represents a significant portion of its domestic presence, which stood at 2,325 locations as of February 2025.
The closures are part of a broader cost-cutting push under CEO Ryan Cohen, who has been aggressively trimming expenses as the company chases ambitious financial targets. Cohen is set to receive stock options valued at up to $35 billion if GameStop reaches a $100 billion market capitalization, making cost reduction a key lever in the company’s strategy.
This latest move isn't sudden. During fiscal year 2024, GameStop shut down 590 stores and signaled that more closures were likely in 2025. Now, with the current fiscal year ending on January 31, the company appears to be accelerating those plans in a bid to lower operating costs before the books close.
Emmanuel Umahi
Store closures have also been paired with a broader retreat from international markets. Over the past few years, GameStop has exited countries including Canada, Germany, Austria, Ireland, Switzerland, and Italy, with France reportedly next in line.
While the strategy may help improve margins and simplify operations, it comes with a human cost. Thousands of employees are expected to be affected by the latest shutdowns, adding to job losses from previous rounds of closures.
GameStop hasn't publicly commented on the new wave of store shutdowns. Still, the pattern underscores the pressure facing traditional brick-and-mortar retailers as digital distribution continues to dominate game sales and physical retail becomes harder to justify.
The Takeaway
GameStop’s continued store closures reflect a broader shift in retail, where cutting physical locations is increasingly viewed as the fastest path to cost savings and market goals. For employees and local communities, the impact is immediate and painful. For executives and shareholders, though, 2026 could be a very profitable year.
Emmanuel Umahi
