GameStop Closing Locations in the United States

GameStop's Silent Store Closures Spark Customer and Employee Outcry

The video game retailer GameStop is quietly shuttering numerous US stores, leaving both customers and employees shocked and disheartened. This wave of closures represents a significant decline for the company, with its physical footprint shrinking by nearly one-third. Social media platforms are buzzing with reports from affected customers and employees, painting a concerning picture of GameStop's future.

Once the world's largest physical retailer of new and used video games, GameStop boasts a 44-year history, originating as Babbage's in 1980. At its peak in 2015, it operated over 6,000 stores globally, generating approximately $9 billion in annual revenue. However, the shift to digital game sales over the past nine years has significantly impacted its performance. As of February 2024, ScrapeHero data indicates a reduction of almost one-third in GameStop's physical stores, with approximately 3,000 remaining in the US.

Following a December 2024 SEC filing hinting at further store closures, a surge of reports from both customers and employees on platforms like Twitter and Reddit has emerged. These accounts detail the unexpected closures of various locations, often with little prior notice. One Twitter user expressed dismay over the closure of a seemingly successful store, fearing this foreshadows the fate of less profitable outlets. Employee accounts also highlight internal struggles, with one Canadian employee citing "unreasonable targets" as management evaluates store viability.

The Ongoing Decline of GameStop

The recent spate of closures reflects a persistent downward trend for GameStop. A March 2024 Reuters report predicted a grim outlook, citing a 287-store closure in the preceding year and a nearly 20% revenue drop ($432 million) in the fourth quarter of 2023 compared to 2022.

Over the years, GameStop has implemented various strategies to combat its decline, including expanding into merchandise, phone trade-ins, and trading card grading. The company also received a temporary boost in 2021 from a surge of amateur investors on Reddit, a phenomenon documented in the Netflix documentary "Eat the Rich: The GameStop Saga" and the film "Dumb Money." Despite these efforts, the recent closures signal ongoing challenges for the struggling retailer.