Summary
- GameStop is quietly closing stores across the US, leaving customers and employees shocked and disappointed.
- The company's physical store count has decreased 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 wave of store closures across the United States, often without prior notice, leaving its loyal customer base in a state of shock and disappointment. Although GameStop has not officially announced an increase in store closures, reports from customers and employees have been flooding social media since the beginning of the year, highlighting the sudden shuttering of their favorite locations.
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 shift towards digital game sales has led to a significant decline in its physical presence. By February 2024, GameStop's store count had 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 hinted at further store closures, both 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 preferred store, which he considered a reliable source for affordable games and consoles. He noted that the store appeared to be thriving, suggesting that its closure could be a worrying sign for less busy locations. Similarly, a Canadian employee voiced frustration over "ridiculous goals" set by the company's management, which are used to determine which stores will remain open.
GameStop Customers Keep Seeing Stores Close
The trend of GameStop store closures continues to reflect the company's ongoing struggles. A Reuters report from March 2024 painted a grim picture, noting that GameStop had closed 287 stores in the previous year. This followed a fourth-quarter 2023 performance that saw a nearly 20 percent drop in revenue, amounting to a loss of 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 include expanding into video game-related merchandise, such as toys and apparel, and venturing into unrelated sectors like 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 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.
