GameStop Closing Locations in the United States

GameStop's Silent Store Closures Shock Customers and Employees

GameStop is quietly shuttering numerous US stores, leaving both customers and employees surprised and disheartened. 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 retailer of new and used video games, GameStop boasts a 44-year history, beginning as Babbage's in 1980. Reaching its zenith in 2015 with over 6,000 global locations and $9 billion in annual sales, the company has experienced a dramatic downturn over the past nine years. This decline is largely attributed to the shift towards digital game sales. As of February 2024, ScrapeHero data indicates a nearly one-third reduction in physical stores, leaving approximately 3,000 locations in the US.

Following a December 2024 SEC filing hinting at further store closures, a wave of reports from both customers and employees flooded platforms like Twitter and Reddit. One Twitter user, @one-big-boss, expressed disappointment over the closure of a seemingly successful local store, fearing this signals trouble for less profitable locations. Employee accounts also emerged, with one Canadian employee citing "unrealistic targets" imposed by upper management during store assessment.

The Ongoing Decline of GameStop

The recent closures are just the latest chapter in GameStop's struggles. A March 2024 Reuters report predicted a grim outlook, highlighting a 287-store closure 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, numerous rescue plans have been attempted, both internally and externally. To combat the shift to online gaming, GameStop has diversified, exploring merchandise like video game-related toys and apparel, and even venturing into unrelated areas such as phone trade-ins and trading card grading. The company also received a temporary boost in 2021 from a group of Reddit investors, a phenomenon documented in the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money.