GameStop is set to close hundreds of stores early in 2026, a decision linked to CEO Ryan Cohen's performance-based stock options that could yield him $35 billion if the company meets specific growth targets. Reports indicate that around 400 locations may shut down, with signs already posted in several stores notifying customers of closures. This follows a trend seen over the past decade, where GameStop has consistently closed more stores than it has opened, further diminishing its physical presence in the gaming market. Despite its efforts to innovate through collectibles and meme culture, such as its recent Trade Anything Day promotion, the company has faced significant challenges in adapting to market changes.

Why is GameStop closing so many stores in 2026?

GameStop is closing many stores due to its CEO's strategies to meet aggressive growth targets and a long-standing trend of decreasing physical locations. The company aims to streamline operations in response to financial pressures and shifting market dynamics.

Founded in 1984, GameStop rose to prominence in the gaming industry with its unique model of buying and selling used games. However, as digital downloads and online gaming surged, the retailer struggled to maintain competitiveness. Its recent pivot away from gaming towards collectibles and bizarre promotions illustrates ongoing attempts to regain market relevance, but its physical store closures highlight the significant challenges it faces in adapting to contemporary gaming trends.