Summary
- GameStop is quietly closing stores across the US, leaving customers and employees surprised and disappointed.
- The retailer's physical store count has dropped by nearly a third, reflecting its ongoing decline.
- Social media is buzzing with reports from customers and employees about these closures, signaling a challenging future for GameStop.
GameStop, the world's largest physical retailer of new and used video games, is closing numerous stores throughout the United States, often without prior notice, leaving its loyal customers in a state of shock and disappointment. Although there has been no official statement from GameStop regarding an increase in store closures, social media has been abuzz since the beginning of the year with reports from both customers and employees about their local stores shutting down.
Originally founded as Babbage's in 1980 with its first store in a Dallas, Texas suburb, GameStop was financially supported by former U.S. presidential candidate Ross Perot. By its peak in 2015, the company boasted over 6,000 stores worldwide and reported annual sales of approximately $9 billion. However, the shift to digital game sales over the past nine years has significantly impacted the company. As of February 2024, GameStop's physical store count has been reduced by almost a third, with around 3,000 stores remaining in the U.S., according to data from ScrapeHero.
Following a December 2024 regulatory filing with the Securities and Exchange Commission hinting at further store closures, both customers and employees have taken to platforms like Twitter and Reddit to share their experiences with closed locations. For instance, Twitter user @one-big-boss expressed dismay over the closure of his favorite store, which he considered a prime spot for affordable games and consoles. He noted that the store seemed busy and successful, suggesting its closure could foreshadow the fate of less popular locations. Additionally, a Canadian employee criticized the "ridiculous goals" set by corporate management, which are used to decide which stores to keep open.
GameStop Customers Keep Seeing Stores Close
The trend of GameStop store closures continues, underscoring the retailer's decline. A March 2024 Reuters report projected a grim future for the company, noting that GameStop had shuttered 287 stores in the previous year. This followed a fourth-quarter 2023 financial report showing a nearly 20% revenue drop, amounting to roughly $432 million less than the same period in 2022.
In response to the shift of its customer base to online game purchasing, GameStop has explored various strategies to stay afloat. These include expanding into video game-related merchandise like toys and apparel, as well as venturing into different sectors such as phone trade-ins and trading card grading. The company also benefited from a surge of interest in 2021, when a group of amateur investors on Reddit rallied to support GameStop, an event documented in the Netflix series "Eat the Rich: The GameStop Saga" and the film "Dumb Money."
