GameStop to Sell Canadian and French Operations Amid CEO’s Criticism of ‘Wokeness and DEI’
Video Game Retailer Streamlines Operations as Part of Cost-Cutting Strategy
GameStop Corp. (NYSE: GME) has announced plans to sell its Canadian and French operations as part of a broader effort to restructure its international business. The decision comes amid ongoing financial struggles for the video game retailer, which has been impacted by the industry’s shift toward digital downloads and game streaming.
The announcement was made via a company statement, with CEO Ryan Cohen later confirming the decision on social media. In a post on X (formerly Twitter), Cohen invited potential buyers to express their interest via email but also added a controversial remark, stating:
“High taxes, Liberalism, Socialism, Progressivism, Wokeness, and DEI included at no additional cost if you buy today!”
The statement sparked debate, as Cohen has been vocal in his criticism of diversity, equity, and inclusion (DEI) initiatives.
GameStop’s International Presence and Financial Challenges
As of early 2024, GameStop operated 203 stores in Canada and 332 in France. The retailer has struggled in recent years due to declining physical game sales, competition from digital marketplaces, and the rise of subscription-based gaming services.
In 2023, Cohen, who took over as CEO that year, signaled a strategic shift toward cost-cutting and long-term profitability. The company has closed numerous locations worldwide and shifted its focus toward online sales and exclusive gaming merchandise.
During its third quarter of 2024, GameStop reported a net income of $17.4 million on total sales of $860.3 million, marking a year-over-year decline. The decision to exit the Canadian and French markets is seen as part of this restructuring effort.
GameStop’s Future and Market Reactions
GameStop’s stock has experienced volatility over the years, fueled in part by the 2021 retail investor frenzy that made it a meme stock. While Cohen has positioned himself as a turnaround strategist, the retailer continues to face significant challenges in adapting to the evolving gaming industry.
The potential sale of its Canadian and French divisions raises questions about the company’s long-term viability in international markets. Investors and analysts will be watching closely to see how GameStop reinvests resources and whether further asset sales will follow.
GameStop has yet to disclose further details about potential buyers or a timeline for the sale.
