GameStop Closing Locations in the United States

GameStop's Silent Store Closures Raise Concerns

GameStop is quietly shutting down numerous US stores, leaving both customers and employees reeling. The closures represent a significant decline for the retailer, with nearly a third of its physical locations disappearing. Social media is buzzing with reports from shocked customers and frustrated employees, painting a worrying picture for the company's future.

The once-dominant physical video game retailer, formerly known as Babbage's, boasts a 44-year history. Founded in 1980 with backing from Ross Perot, GameStop reached its zenith in 2015, boasting over 6,000 stores globally and $9 billion in annual sales. However, the shift to digital game sales over the past nine years has severely impacted its performance. By February 2024, ScrapeHero data indicated a nearly one-third reduction in physical stores, leaving approximately 3,000 locations in the US.

Following a December 2024 SEC filing hinting at further closures, a wave of reports flooded social media platforms like Twitter and Reddit. Customers voiced their disappointment, citing the loss of convenient, affordable game and console options. Employees also shared their concerns, with one Canadian employee highlighting unrealistic performance targets amidst the store closure assessments.

The Ongoing Decline of GameStop

The recent closures are merely the latest chapter in GameStop's ongoing struggle. A March 2024 Reuters report predicted a grim outlook, citing a 287-store closure in the previous year and a nearly 20% (approximately $432 million) revenue drop in the fourth quarter of 2023 compared to 2022.

Numerous rescue attempts have been made over the years, from internal and external sources. As its customer base migrated online, GameStop experimented with various strategies: expanding into merchandise, phone trade-ins, and even trading card grading. The company also experienced a temporary surge in 2021 thanks to a wave of Reddit-fueled amateur investment, a phenomenon documented in Netflix's "Eat the Rich: The GameStop Saga" and the film "Dumb Money."