GameStop Closing Locations in the United States

GameStop's Silent Store Closures Spark Concern

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

The world's largest physical video game retailer, GameStop (formerly Babbage's), boasts a 44-year history. Launched in 1980 with backing from Ross Perot, it peaked in 2015 with over 6,000 global locations 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 social media posts from customers and employees has confirmed the trend. Twitter and Reddit are filled with accounts of unexpected store closures. One user, @one-big-boss, mourned the loss of a favorite store, highlighting its popularity and expressing concern for less profitable locations. Employee complaints about unrealistic targets further underscore the internal pressure facing the company as it decides which stores to retain.

GameStop's Struggle Continues

The recent spate of closures reflects GameStop's ongoing decline. A March 2024 Reuters report predicted a gloomy outlook, citing a 20% revenue drop ($432 million) in the fourth quarter of 2023 compared to the same period in 2022, along with the closure of 287 stores.

Over the years, various rescue plans have been attempted, ranging from diversifying into toys, apparel, phone trade-ins, and trading card grading to counter the shift to online game purchases. The 2021 intervention by Reddit's amateur investors, documented in Netflix's "Eat the Rich: The GameStop Saga" and the film "Dumb Money," provided a temporary reprieve, but the company's struggles persist.