GameStop to Close Stores Across U.S.

Summary

• GameStop is silently closing stores across the US, leaving customers and employees shocked and disappointed.
• The company's physical locations have decreased by nearly a third, signaling a significant decline.
• Social media platforms are buzzing with reports of closures, indicating a troubling future for GameStop.

GameStop, the world's largest physical retailer of new and used video games, has been quietly shutting down many of its stores across the United States, often without any prior notice. This has left loyal customers feeling shocked and disappointed. Although there has been no official announcement from GameStop regarding an increase in store closures, both customers and employees have been actively sharing their experiences of closures on social media since the beginning of the year.

Originally founded as Babbage's in 1980 in a Dallas, Texas suburb with financial backing from former U.S. presidential candidate Ross Perot, GameStop reached its peak in 2015 with over 6,000 stores worldwide and annual sales of approximately $9 billion. However, the rise of digital game sales over the past nine years has led to a significant reduction in its physical presence. As of February 2024, GameStop's store count has been reduced by nearly one-third, with around 3,000 stores remaining in the United States, according to data from ScrapeHero.

Following a regulatory report filed with the Securities and Exchange Commission in December 2024, which suggested further store closures, both customers and employees have been vocal about the closures on platforms like Twitter and Reddit. For instance, Twitter user @one-big-boss expressed his disappointment over the closure of his favorite store, which he considered a reliable source for affordable games and consoles. He noted that despite its apparent success, the closure of this store bodes ill for less busy locations. Similarly, a Canadian employee highlighted the "ridiculous goals" set by the company's management as they decide which stores to keep open.

GameStop Customers Keep Seeing Stores Close

The ongoing reports of GameStop store closures reflect a continuing trend of decline for the retailer. A Reuters report from March 2024 forecasted a bleak future for GameStop, noting that the company had closed 287 stores in the previous year. This followed a fourth-quarter 2023 performance where revenue fell by nearly 20 percent, or about $432 million, compared to the same period in 2022.

In an attempt to adapt to the shift towards online game purchases, GameStop has explored various strategies over the years. These include expanding into video game-related toys and apparel, as well as venturing into different industries 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, a story that has been captured in the Netflix documentary "Eat the Rich: The GameStop Saga" and the film "Dumb Money." Despite these efforts, the future remains uncertain for GameStop as it continues to grapple with the challenges of a rapidly evolving market.