GameStop Closing Locations in the United States

Summary

• GameStop is quietly closing numerous stores across the US, leaving both customers and employees in shock and disappointment.
• The retailer has seen a significant decline, with nearly a third of its physical locations closing over the last nine years.
• Social media platforms are buzzing with reports from customers and employees about the closures, signaling a troubling future for the company.

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 shocked disappointment. While GameStop has not officially announced an increase in store closures, customers and employees have been actively sharing news of their local stores closing or about to close on social media since the beginning of the year.

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 decreased by nearly one-third, leaving around 3,000 stores in the U.S., 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 favorite store, which he considered a reliable source for affordable games and consoles. He noted that the store appeared to be successful and popular, suggesting that its closure could be a worrying sign for less busy locations. Employees have also voiced their concerns, with one Canadian worker mentioning "ridiculous goals" set by the company's management as they decide which stores to keep open.

GameStop Customers Keep Seeing Stores Close

The ongoing reports of GameStop store closures reflect a continuing downward trend for the struggling retailer. 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% drop in revenue, amounting to a loss of about $432 million compared to the same period in 2022.

In an effort to adapt to the shift in consumer behavior towards online game purchases, GameStop has explored various strategies over the years. These include expanding into video game-related toys and apparel, as well as venturing into unrelated 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, an event that has been documented in the Netflix documentary "Eat the Rich: The GameStop Saga" and the film "Dumb Money."