Summary
- GameStop is quietly closing stores across the US, leaving customers and employees shocked and disappointed.
- The company's physical locations have decreased by almost a third, signaling a significant decline.
- Social media platforms are buzzing with reports of closures, pointing to a troubling 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 with little to no warning. This has left loyal customers feeling shocked and disappointed. Despite no official announcement from GameStop about increased closures, customers and employees have been actively reporting newly or soon-to-be-closed stores on social media since the beginning of the year.
Originally known as Babbage's, GameStop opened its first store in a Dallas, Texas suburb in August 1980 with financial backing from former U.S. presidential candidate Ross Perot. By its peak in 2015, GameStop boasted over 6,000 locations worldwide and reported annual sales of about $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 locations have been reduced by nearly one-third, with approximately 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 more 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 favorite GameStop location, which he viewed as a reliable source for affordable games and consoles. He believed the store was still popular and successful, making its closure a worrying sign for other less busy locations. Additionally, a Canadian employee voiced frustration over "ridiculous goals" set by the company's higher-ups as they decide which stores to keep open.
GameStop Customers Keep Seeing Stores Close
The trend of reported GameStop closures continues to underscore the retailer's decline. A Reuters report from March 2024 painted a grim picture, noting that GameStop had closed 287 stores over the previous year. This came after a fourth-quarter 2023 report showing a nearly 20 percent revenue drop, or approximately $432 million, compared to the same period in 2022.
In response to the shift of its customer base to online game purchases, GameStop has explored various strategies to stay afloat. 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 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.
