GameStop store closures: Cohen targets $100B market cap

GameStop store closures are reshaping the retailer’s nationwide footprint as executives pursue a dramatic strategic shift that blends streamlining with a renewed focus on core digital initiatives. The company has reported hundreds of shuttered stores across the United States, signaling a sweeping restructuring that affects workers, franchise partners, and investors while prompting questions about cash burn and turnaround timelines. Some discussions reference a GameStop market cap target that would dramatically alter the company’s valuation, tying executive incentives to milestones such as sustained revenue growth, improved profitability, and a sensible capital allocation framework. Beyond the US, the longer-term plan is being weighed in the context of US store closures 2024 and how the downturn might influence portfolio strategy, international operations, and the pace of future real estate decisions. Reports also flag an EB Games NZ closure, while analysts and employees await clarity on Ryan Cohen compensation and the broader implications for leadership pay, governance, and strategic accountability.

Looking ahead, the retailer’s shrinking footprint signals a shift from broad brick-and-mortar expansion to selective, profitable locations and a leaner operating model. Analysts describe this as portfolio pruning and storefront rationalization, a strategy often paired with cost controls and a redefined growth trajectory. In market terms, the focus expands beyond traditional sales channels toward digital resilience, inventory discipline, and governance practices tied to performance benchmarks. The NZ market example and other regional adjustments illustrate a broader trend of reorganizing international assets to prioritize sustainable cash flow. For readers, this framing aligns with related topics such as market capitalization targets, corporate strategy shifts, and ongoing discussions around leadership incentives.

US Store Closures 2024: GameStop’s Shrinking Footprint and Strategic Rethink

Reports compiled from industry sources indicate a substantial contraction of GameStop’s U.S. store footprint in 2024, underscoring a strategic shift away from a broad brick-and-mortar network. The GS Closing blog tallied 390 stores closed with about 10 more unconfirmed, highlighting a rapid turnover of locations across the country. Separately, GameStop’s own disclosures regarding the 2024 financial year state that the company closed a significant number of U.S. stores, with the expectation of closing additional outlets in fiscal 2025. These figures together illustrate a deliberate resize rather than a mere temporary lull.

The closure wave aligns with a broader push to reallocate capital toward higher-return channels and to streamline operating costs. Analysts and investors are watching how this shrinking footprint intersects with GameStop’s long‑term ambition to raise its market cap, a goal tied to CEO Ryan Cohen’s compensation plan and the company’s strategic pivot. In this context, the closures raise questions about revenue resilience, store performance, and the pace at which GameStop can shift resources toward growth segments like online sales and collectibles.

EB Games NZ Closure: Implications for New Zealand Retail and Staff Consultation

News reports and regulatory filings point to the possibility of closing EB Games New Zealand, with New Zealand’s local media and RNZ highlighting discussions around a formal closure process. The company’s 10-K filing indicates 38 EB Games stores operate in New Zealand, framing any closure as a meaningful restructuring rather than a minor realignment. RNZ reports that the proposal is not yet final and that extensive consultation with affected staff is planned before any decision is made.

If the EB Games NZ closure proceeds, it would represent a notable pullback in the company’s international footprint and could affect regional brand presence and customer access to gaming titles, consoles, and related services. The situation underscores GameStop’s broader drive to recalibrate its international operations, balance costs, and ensure that remaining stores are aligned with updated profitability targets. Stakeholders will be watching how staff communications and consultation processes unfold during this transition.

Global Contraction: Ireland, Switzerland, Austria, Germany and Beyond

GameStop’s international footprint has been increasingly targeted for consolidation, with reports of closures in several European markets including Ireland, Switzerland, Austria, and Germany. In addition to store exits, the company has sold its Italian subsidiary and is actively seeking buyers for its French and Canadian businesses, signaling a broader retreat from non‑core markets. These moves are presented as part of a strategic review aimed at simplifying operations and freeing capital for core growth initiatives.

The global retrenchment reduces complexity and potential execution risk across borders, but also shortens GameStop’s international brand reach at a time when investors are weighing the company’s ability to deliver consistent performance outside the United States. Analysts note that such international leaves may improve near‑term cash flow while potentially limiting long‑term revenue diversification. The net effect for stakeholders is a more U.S.-centric portfolio with a tighter, efficiency‑driven international stance.

Ryan Cohen Compensation: The $35 Million Long-Term Award and Market Cap Goals

GameStop has announced a long‑term performance award for CEO Ryan Cohen valued at about $35 million, contingent on achieving specific milestones tied to shareholder value. A key element of the plan requires increasing GameStop’s market capitalization to $100 billion, framing Cohen’s compensation as a payoff for a substantial revaluation of the company’s equity. At the time of reporting, GameStop’s market cap hovered around roughly $9.5 billion, placing the target far above current levels.

The compensation package has sparked discussions about executive incentives versus ongoing business risk, particularly given the company’s recent pattern of store closures and international realignment. While proponents argue that aligning pay with a higher market cap can accelerate strategic execution, critics caution that such targets depend on factors beyond daily operations, including market sentiment and external liquidity conditions. The dynamic underscores how executive compensation is increasingly entwined with ambitious growth milestones rather than traditional performance metrics alone.

GameStop Market Cap Target: Assessing the Path to a $100B Valuation

The proclaimed market cap target of $100 billion positions GameStop against a vastly larger class of technology-enabled retailers, highlighting an aspirational goal that would require both revenue growth and a stronger margin profile. By comparison, GameStop’s valuation peaked around $33.7 billion during the 2021 short squeeze era, illustrating how distant the new target remains from historic highs. The company’s current market capitalization, reported near about $9.5 billion, suggests a long runway for capital allocation and strategic execution.

Achieving a $100B target would likely hinge on a combination of store optimization, higher-margin product categories, potential new revenue streams, and sustained investor confidence in the turnaround plan. Critics question whether the pace of closures and international retrenchment could paradoxically limit long‑term growth, while supporters argue that disciplined capital allocation could free up resources for scalable initiatives. The debate centers on whether market sentiment and execution risk can align to unlock such a lofty valuation.

US Store Closures 2024: Scope, Causes, and Economic Impact

The 2024 wave of store closures in the United States reflects a structural shift away from traditional retail at scale toward more digital‑leaning and lower‑cost formats. The reported figures—390 stores closed with 10 unconfirmed, alongside a broader statement that 590 U.S. stores were shuttered in 2024—illustrate a sweeping reallocation away from underperforming locations. Management has signaled that more outlets would close in fiscal 2025 as part of this ongoing reset.

From an economic standpoint, the closures compress near‑term revenue while aiming to reduce operating costs and inventory exposure. The move also interacts with investor expectations around the company’s ability to monetize online channels, collectibles, and other growth opportunities. In the bigger picture, US store closures are a barometer of GameStop’s recalibration strategy and how quickly it can translate reduced footprint into improved profitability.

10-K Insights 2025: What the Filing Reveals About Strategy and Closures

GameStop’s 10‑K filing for the fiscal year ending February 2025 provides a data point for the scale and pace of closures, including the note that a significant number of additional stores are expected to close in fiscal 2025. The filing also confirms international movements, such as the New Zealand footprint and the broader push to streamline the corporate structure. Investors parsing the 10‑K will focus on the balance of kv lists, store‑level performance, and how capital is reapportioned toward higher‑return activities.

Key performance indicators highlighted in the filing include not only store closures but also the trajectory of sales across product categories. The report notes declines in net sales and provides granular detail on the shifts in hardware, software, and collectibles, signaling how retail mix and store footprint intersect with overall profitability. This document serves as a roadmap for understanding how GameStop intends to navigate its contraction while funding strategic initiatives.

Financial Performance 2023–2024: Net Sales Declines and Product Mix Shifts

GameStop’s year‑over‑year performance reveals a notable revenue decline as the company reports a 27.5% drop in net sales from 2023 to 2024, down to about $3.8 billion. Within that headline figure, hardware and accessories sales fell by roughly 29.9%, software declined by about 33.9%, while collectibles decreased by around 4.8%. These numbers illuminate how the company’s traditional product mix has been under pressure during the consolidation phase.

The sales compression in 2023–2024 aligns with the ongoing store closures and international retrenchment, creating a challenging backdrop for earnings visibility. Analysts are weighing whether the reduced footprint and product mix will be offset by growth in digital channels, online marketplaces, or new monetization streams. The combination of store closures and declining hardware demand underscores the urgency of executing a compelling, multiyear plan to restore growth and margins.

International Divestitures and Strategic Market Exit: Italy, Canada, France

GameStop has signaled strategic exits from several international markets, including the sale of its Italian subsidiary and efforts to find buyers for French and Canadian operations. These steps form part of a broader strategy to pare back non‑core markets and reallocate capital to areas with higher potential for return. Such actions are framed as prudent restructuring aimed at simplifying the business and focusing on core growth opportunities.

The divestitures also have implications for employees, suppliers, and customers in affected regions, as well as for brand equity outside the United States. While some markets are being closed or divested, the company emphasizes that remaining stores will be aligned with a redefined international strategy. Market watchers will assess how these exits affect overall revenue diversification and balance sheet flexibility in the near term.

Investor Perspective: How News of Closures and Cohen’s Pay Shapes Stock Valuation

Investors are weighing the implications of continued store closures and the upward‑oriented Ryan Cohen compensation plan on GameStop’s valuation. Media coverage of strategic retrenchment and the CEO’s long‑term incentive package can influence perceived risk and the timetable for returning to profitability. In a market where momentum can swing quickly, these elements may affect multiple expansion expectations and the willingness of buyers and funds to participate.

The discussion around closures and remuneration feeds into broader conversations about how much of GameStop’s value is now tied to growth catalysts beyond physical stores. With the company targeting a much higher market cap and recalibrating its international footprint, investors will be watching for concrete evidence of durable revenue streams, improved gross margins, and a credible path to profitability that can justify the revisions in the stock’s multiple. Perception, timing, and execution risk are all central to translating strategic moves into a higher valuation.

Short Squeeze Memory and Market Valuation: From $33.7B Peak to Today’s Level

GameStop’s stock market narrative still echoes the dramatic rise seen during the r/wallstreetbets era, when shares climbed to a peak market capitalization of about $33.7 billion. In the years since, the company’s value has retreated as store closures, international reconfiguration, and shifting consumer behavior reshaped the fundamentals. The current market cap of roughly $9–10 billion positions the company far from those earlier highs.

This historical context matters because it informs how investors interpret the company’s ambitious market cap target and compensation milestones. Proponents argue that the path to a $100 billion target could be driven by scalable digital initiatives and higher-margin categories, while skeptics caution that liquidity, execution risk, and macro conditions could limit upside. The memory of past volatility remains a lens through which stakeholders evaluate present strategic bets.

Employee Communications and Stakeholder Engagement Amid Restructuring: NZ Staff Consultation

As part of the ongoing restructuring, employee communications in New Zealand underline the importance of a good-faith consultation process before any closures are finalized. An internal email circulated to staff reflects the company’s stated intention to conduct a thorough discussion with affected team members, signaling that labor considerations will be factored into decision‑making. This emphasis on consultation aligns with broader governance standards during periods of significant organizational change.

The NZ engagement highlights how GameStop is balancing operational resets with workforce stability, even as it scales back certain international operations. Stakeholders will be attentive to timelines, severance terms if closures proceed, and how the company plans to redeploy or retrain employees for roles aligned with the updated strategic priorities. Transparent communication throughout this process remains a key factor in sustaining trust during a high‑impact transition.

Frequently Asked Questions

Key Point	Details	Context / Figures
CEO compensation linked to market-cap growth	Ryan Cohen is on track for a $35 million payout if GameStop reaches a $100 billion market cap (a ~950% increase from about $9.52B).	Long-term performance award; target outlined in 2025 context.
US store closures	Hundreds of stores reportedly closed in the United States; GS Closing blog lists 390 closed, with 10 unconfirmed.	Reported via social posts tracked by Polygon.
New Zealand operations	EB Games subsidiary under consideration for closure; NZ had 38 stores in 2025 per 10-K.	BNZ/EB Games MD communications indicate a full consultation for staff; decision not final.
Overall US store closures and fiscal-year trend	In 2024, 590 US stores closed; company expects a significant number of additional closures in fiscal 2025.	Part of broader company-wide cost-cutting and portfolio review.
International activity	Closures in Ireland, Switzerland, Austria, Germany; Italian subsidiary sold; buyers sought for French and Canadian businesses.	Broader geographic contraction strategy.
Financial performance trend	Net sales fell 27.5% to $3.8B between 2023 and 2024; hardware/accessories down 29.9%; software down 33.9%; collectibles down 4.8%.	Indicates revenue mix pressures amid store reductions.
Historical market-cap context	At the 2021 short squeeze peak, market cap was $33.7B; as of Jan 2026, about $9.52B.	Shows volatility and milestones relevant to compensation discussions.

Summary

GameStop store closures are reshaping the retailer’s footprint, with hundreds of U.S. stores shuttered and international operations under review. This trend coincides with a high-stakes compensation plan that could award CEO Ryan Cohen $35 million if a $100 billion market cap is reached. The company has also reorganized its portfolio through significant geographic contraction, including NZ EB Games considerations, and substantial reductions in US retail locations. Financially, net sales declined 27.5% to $3.8B from 2023 to 2024, while hardware, software, and collectibles all saw substantial declines.