US video game and merchandise retailer GameStop has revealed plans to divest its business operations in France and Canada.
The strategic move is part of the company's broader assessment of its international assets.
With a global footprint that includes the US, Canada, Australia and Europe, GameStop's retail network comprised 4,169 stores as of 3 February 2024.
The company operates 203 outlets in Canada and 647 across Europe, predominantly branded as GameStop, EB Games or Micromania.
Details surrounding the rationale for the divestiture remain few, as GameStop has refrained from providing additional information regarding the decision to sell these specific segments of its operations.
GameStop CEO Ryan Cohen posted to X on 19 February 2025 that the two business arms were for sale.
His statement read: "Email M&A@gamestop.com if you're interested in buying GameStop Canada or Micromania France. High taxes, Liberalism, Socialism, Progressivism, Wokeness and DEI included at no additional cost if you buy today!"
Since joining GameStop's board of directors in 2020 and ascending to CEO in 2023, Cohen has emphasised a strategic pivot towards cost-cutting and enhancing long-term profitability. This shift includes plans for a leaner retail store network.
GameStop's financial performance reflects these strategic changes. In the third quarter of fiscal 2024, net sales amounted to $860m, a decrease from $1.07bn reported in the same quarter of the previous year.
However, net income showed improvement at $17.4m for the quarter, compared to a net loss of $3.1m in the corresponding period of the previous year.
In March 2024, GameStop made job cuts as part of cost reduction efforts and reported lower fourth-quarter revenue. These challenges were attributed to heightened competition from e-commerce platforms and subdued consumer spending amidst economic uncertainties.
