GameStop to Shutter Stores Nationwide

GameStop's Silent Store Closures Spark Customer and Employee Concerns

GameStop is quietly shutting down numerous US stores, leaving both customers and employees reeling. This wave of closures represents a significant decline for the once-dominant retailer, with nearly a third of its physical locations disappearing. Social media platforms are buzzing with reports from affected customers and employees, painting a concerning picture of the company's future.

The world's largest physical video game retailer, GameStop boasts a 44-year history, beginning as Babbage's in 1980. Backed by Ross Perot, it expanded to over 6,000 global locations by 2015, generating approximately $9 billion in annual sales. However, the shift to digital game sales over the past nine years has significantly impacted GameStop's performance. By February 2024, ScrapeHero data indicated a nearly one-third reduction in physical stores, leaving approximately 3,000 locations in the US.

Following a December 2024 SEC filing hinting at further store closures, a surge of reports emerged on platforms like Twitter and Reddit. Customers expressed dismay, like @one-big-boss, who mourned the loss of a favored location known for affordable games and consoles. He worried this closure foreshadows difficulties for less profitable stores. Employees also shared their experiences, with one Canadian employee citing "ridiculous goals" imposed by upper management during store assessment.

GameStop's Store Closures Reflect a Broader Decline

The recent closures continue a downward trend for the struggling retailer. A March 2024 Reuters report predicted a grim outlook for GameStop, highlighting the closure of 287 stores in the preceding year. This followed a nearly 20 percent revenue drop ($432 million) in the fourth quarter of 2023 compared to 2022.

Over the years, various internal and external attempts have been made to revive GameStop. To counter the shift to online game purchases, the company has experimented with diverse strategies, including expanding into video game-related merchandise, phone trade-ins, and trading card grading. A notable event was the 2021 intervention of amateur Reddit investors, a phenomenon documented in the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money.