Summary

• GameStop is quietly closing stores across the US, leaving customers and employees shocked and disappointed.
• The decline of GameStop is evident, with its physical locations reduced by nearly a third.
• Social media platforms are buzzing with customers and employees sharing news of closures, signaling a challenging future for the company.

GameStop, the world's largest physical retailer of new and used video games, is experiencing a wave of store closures across the United States, often without prior notice, leaving loyal customers in a state of shock and disappointment. Despite no official announcements from GameStop regarding an increase in store closures, both customers and employees have been vocal on social media since the beginning of the year, reporting their local stores' closures or impending shutdowns.

Originally known as Babbage's, GameStop's history spans over 44 years, starting with 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 to digital game sales over the past nine years has led to a significant decline. As of February 2024, GameStop's physical store count had dropped by nearly one-third, with around 3,000 stores remaining in the US, according to data from ScrapeHero.

Following a regulatory report filed with the Securities and Exchange Commission in December 2024, suggesting more closures were on the horizon, customers and employees have taken to platforms like Twitter and Reddit to share their experiences. 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 the store's popularity and success, viewing its closure as a worrying sign for less busy locations. Similarly, employees, including one from Canada, have voiced concerns about "ridiculous goals" set by upper management in deciding which stores to keep open.

GameStop Customers Keep Seeing Stores Close

The ongoing reports of GameStop store closures highlight a continuing trend for the struggling retailer. A Reuters report from March 2024 painted a grim picture for GameStop, revealing that the company had shuttered 287 stores in the previous year. This came after fourth-quarter 2023 figures showed a nearly 20% revenue drop, amounting to about $432 million less than the same period in 2022.

Over recent years, GameStop has explored various strategies to counteract the shift of its customer base to online game purchasing. These efforts included expanding into video game-related merchandise and apparel, as well as venturing into unrelated industries such as phone trade-ins and trading card grading. In 2021, the company received a temporary boost from a group of amateur investors on Reddit, an event famously documented 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 navigates the challenges of a rapidly evolving retail landscape.