GameStop Shuttering Stores Nationwide

GameStop's Silent Store Closures Spark Customer and Employee Outcry

GameStop is quietly shuttering numerous US stores, leaving both customers and employees reeling from the unexpected closures. The retailer's decline is starkly evident in the nearly one-third reduction of its physical presence. Social media platforms are buzzing with reports from affected customers and employees, painting a concerning picture of the company's future.

Once the world's largest physical retailer of new and used video games, GameStop boasts a 44-year history, originating as Babbage's in 1980. Boosted by investment from Ross Perot, it peaked in 2015 with over 6,000 global locations and $9 billion in annual sales. However, the shift to digital game sales over the past nine years has significantly impacted its performance. By February 2024, ScrapeHero data revealed a nearly 33% decrease 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 flooded social media platforms like Twitter and Reddit. Customers expressed disappointment, citing the loss of convenient, affordable gaming options. Employees also voiced concerns, with one Canadian employee highlighting unrealistic sales targets amidst store closures.

The Ongoing Closure Trend

The recent closures continue a downward trend for GameStop. A March 2024 Reuters report predicted a gloomy outlook, noting the closure of 287 stores in the previous year, following a nearly 20% (approximately $432 million) revenue drop in the fourth quarter of 2023 compared to 2022.

Numerous attempts have been made to revitalize GameStop, including diversifying into toys, apparel, phone trade-ins, and trading card grading. A significant boost arrived in 2021 from a surge in amateur investor interest, documented in the Netflix documentary "Eat the Rich: The GameStop Saga" and the film "Dumb Money." However, these efforts haven't been enough to stem the tide of store closures and the company's ongoing struggles.