GameStop Corp., once a staple for physical video game retail, is trimming its presence in the Bay Area with plans to shutter nearly half of its stores here. The SF Business Times reported that 15 local GameStop locations are either closing down or have already closed, citing a store optimization review that began in 2024, aiming to axe underperforming outlets.
With digital market growth squeezing brick-and-mortar retailers, GameStop has found itself in steadily deepening waters, announcing a companywide cull of 590 stores in fiscal 2024 and signaling more closures to come in fiscal 2025, as employees at two Bay Area stores confirmed in phone calls obtained by the SF Business Times. However, it appears to be more than just a local trend, as an unofficial blog tracking the company's closures pointed to approximately 30 GameStop closures in California as part of a wider pattern of 470 closures nationally.
The chain's shifts in business strategy follow the company's early 2025 announcements, where GameStop warned of the upcoming closures and introduced revisions to its investment policy, which included allocating some investments into Bitcoin, according to a KTVU report. These moves come at a time when GameStop's quarterly earnings continue to disappoint, with a reported $39.3 million year-over-year decline in revenue.
In line with their adapting strategies, GameStop awarded a performance-based stock option to CEO Ryan Cohen that would reap benefits if the company's market capitalization reaches $100 billion, a figure that dwarfs its current $9 billion valuation, as reported by KTVU. Notably, the video game retailer captured the public's attention in 2021 when it became a major meme stock, fueled by traders from Reddit's r/WallStreetBets, despite its continued challenges in the retail sector and a substantial 34% decline in its stock price over the last year.
