GameStop Closing Locations in the United States

GameStop's Silent Store Closures Spark Concern

GameStop is quietly shuttering numerous US stores, leaving both 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 platforms are buzzing with reports from affected customers and 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. Founded 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 significantly impacted its performance. By February 2024, according to ScrapeHero, GameStop had lost nearly one-third of its stores, leaving approximately 3,000 in the US.

Following a December 2024 SEC filing hinting at further closures, a wave of social media posts from customers and employees confirmed the trend. Twitter users, like @one-big-boss, expressed dismay at the loss of their local stores, citing the impact on affordable game and console access. Employee accounts also emerged, detailing challenges like "ridiculous goals" imposed by management as they assess store viability.

GameStop's Ongoing Struggle

The recent closures continue a downward trend for the struggling retailer. A March 2024 Reuters report predicted a grim outlook, noting the closure of 287 stores in the previous year following a nearly 20% (approximately $432 million) revenue drop in the fourth quarter of 2023 compared to 2022.

Over the years, various strategies have been attempted to revitalize GameStop, including expanding into toys, apparel, phone trade-ins, and trading card grading. The company also experienced a brief resurgence in 2021 thanks to a surge in interest from Reddit investors, a phenomenon documented in Netflix's "Eat the Rich: The GameStop Saga" and the film "Dumb Money." However, the current wave of closures suggests these efforts may not be enough to stem the tide.