Summary
- GameStop is quietly closing numerous US stores, leaving customers and employees surprised and disappointed.
- GameStop's decline is evident, with its physical store count reduced by almost a third.
- Social media posts from customers and employees highlight the closures, hinting at a concerning future for the company.
GameStop's unexpected and often unannounced closure of numerous US stores is causing significant disappointment among loyal customers. While GameStop hasn't officially announced widespread closures, social media reports from customers and employees since the start of the year paint a concerning picture.
For over 44 years, GameStop (formerly Babbage's) has been a major retailer of new and used video games. Founded in a Dallas suburb in August 1980 with backing from Ross Perot, it boasted over 6,000 global locations and $9 billion in annual sales at its peak in 2015. However, the shift to digital game sales over the past nine years has significantly impacted GameStop. By February 2024, ScrapeHero data indicated a nearly one-third reduction in physical stores, leaving approximately 3,000 in the US.
Following a December 2024 SEC filing hinting at further closures, customers and employees have taken to Twitter and Reddit to report store closings. One Twitter user, @one-big-boss, expressed dismay over the closure of a seemingly successful local store, fearing this foreshadows closures of less profitable locations. Employees have also voiced concerns, with one Canadian worker citing "ridiculous goals" imposed by upper management during store assessment.
GameStop Customers Keep Seeing Stores Close
The ongoing closure of GameStop stores reflects the retailer's continuing decline. A March 2024 Reuters report predicted a bleak future, citing the closure of 287 stores in the previous year following a nearly 20 percent (approximately $432 million) drop in fourth-quarter 2023 revenue compared to 2022.
Over the years, GameStop has implemented various strategies to combat its decline, including expanding into video game-related merchandise, phone trade-ins, and trading card grading, all in response to shifting customer preferences towards online game purchases. The company also received a significant boost in 2021 from a group of Reddit investors, a phenomenon documented in the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money.
