GameStop to Close Several U.S. Stores

Summary

• GameStop is quietly closing stores across the US, leaving customers and employees in a state of shock and disappointment.
• The company's physical store count has dropped by nearly a third, signaling a significant decline.
• Social media platforms are buzzing with reports from customers and employees about these closures, pointing to a challenging future for GameStop.

GameStop, the world's largest physical retailer of new and used video games, is undergoing a troubling trend of store closures across the United States, often without any prior notice. This leaves loyal customers feeling blindsided and disappointed. Although GameStop has not officially announced an uptick in store closures, the community has been vocal on social media since the beginning of the year, sharing news of their local stores shutting down.

Founded over 44 years ago as Babbage's, GameStop opened its first store in a Dallas, Texas suburb in August 1980, backed financially by former U.S. presidential candidate Ross Perot. At its peak in 2015, GameStop boasted over 6,000 stores worldwide and reported annual sales of approximately $9 billion. However, the shift towards digital game sales over the past nine years has led to a significant reduction in its physical locations. As of February 2024, the company's store count had decreased by nearly one-third, with around 3,000 stores remaining in the United States, according to data from ScrapeHero.

A regulatory report filed with the Securities and Exchange Commission in December 2024 hinted at further store closures, prompting both customers and employees to share their experiences on social media platforms like Twitter and Reddit. For instance, Twitter user @one-big-boss expressed dismay over the closure of his favorite store, which he considered a reliable source for affordable games and consoles. He noted that the store still appeared to be thriving, suggesting that less busy locations might be next in line for closure. Employees have also voiced concerns, with a Canadian worker citing "ridiculous goals" set by upper management in determining which stores to keep open.

GameStop Customers Keep Seeing Stores Close

The trend of GameStop store closures is part of a broader decline for the retailer. A Reuters report from March 2024 painted a grim picture, revealing that GameStop had shuttered 287 stores in the previous year following a fourth-quarter 2023 revenue drop of nearly 20 percent, or about $432 million, compared to the same period in 2022.

In response to the shift in consumer behavior towards online game purchases, GameStop has explored various strategies to stay afloat. These efforts include expanding into video game-related merchandise like toys and apparel, as well as venturing into unrelated sectors such as phone trade-ins and trading card grading. The company also received a significant boost in 2021 from a group of amateur investors on Reddit, an event that has been documented in the Netflix series "Eat the Rich: The GameStop Saga" and the film "Dumb Money." Despite these efforts, the future remains uncertain for GameStop as it continues to navigate its challenging landscape.