GameStop Shuttering Locations Nationwide

GameStop's Silent Store Closures Spark Concern

GameStop is quietly shutting down numerous US stores, leaving both customers and employees reeling. The company's decline is starkly evident in the nearly one-third reduction of its physical locations. Social media platforms are buzzing with customer and employee reports of closures, painting a concerning picture for the retailer's future.

The world's largest physical retailer of new and used video games, GameStop boasts a 44-year history, originating as Babbage's. Launched in 1980 in a Dallas suburb with backing from Ross Perot, it reached its zenith in 2015, boasting over 6,000 global stores and $9 billion in annual sales. However, the past nine years have witnessed a significant downturn, largely attributed to the shift towards digital game sales. By February 2024, ScrapeHero data indicated a nearly 33% decrease in physical locations, leaving approximately 3,000 stores in the US.

Following a December 2024 SEC filing hinting at further store closures, a wave of social media posts from customers and employees confirmed these closures. One Twitter user expressed dismay over the closure of a seemingly successful local store, fearing it foreshadows the fate of less profitable locations. Employee accounts also surfaced, with one Canadian employee citing "unrealistic targets" as the company assesses store viability.

GameStop's Struggle Continues

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

Over the years, various strategies aimed at rescuing GameStop have been implemented, including expanding into related merchandise (toys, apparel), venturing into new areas (phone trade-ins, trading card grading), and even benefiting from a 2021 surge in amateur investor interest, documented in works like the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money. However, these efforts haven't stemmed the tide of store closures.