GameStop's Silent Store Closures Spark Concern

GameStop is quietly shutting down numerous US stores, leaving customers and employees reeling. The closures, often announced with little or no warning, represent a significant decline for the once-dominant retailer. Social media is buzzing with reports from affected customers and employees, painting a concerning picture of the company's future.

GameStop, the world's largest physical retailer of new and used video games, 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 sales. However, the shift to digital game sales over the past nine years has severely impacted its performance. By February 2024, according to ScrapeHero, GameStop had reduced its physical footprint by nearly one-third, with roughly 3,000 US locations remaining.

Following a December 2024 SEC filing hinting at further store closures, both customers and employees have taken to platforms like Twitter and Reddit to share news of closed stores. One Twitter user expressed disappointment over the closure of a seemingly successful local store, fearing this foreshadows the fate of less profitable locations. Employee accounts also highlight the challenges, with one Canadian employee citing "ridiculous goals" imposed by upper management during store assessment.

GameStop's Ongoing Store Closures Reflect a Declining Trend

The recent wave of closures continues a pattern of decline for GameStop. 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.

Over the years, GameStop has attempted various strategies to stay afloat, including expanding into merchandise, phone trade-ins, and trading card grading, all while grappling with the shift to online gaming. The company also received a significant 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.