GameStop is quietly shutting down numerous US stores, leaving both customers and employees reeling. The closures represent a significant decline for the once-dominant retailer, with nearly a third of its physical locations now closed. Social media is buzzing with reports from affected customers and employees, painting a concerning picture of GameStop's future.
While GameStop hasn't publicly announced widespread closures, anecdotal evidence from customers and staff on platforms like Twitter and Reddit has been mounting since the beginning of the year. This silent exodus of stores is striking, given GameStop's history. Founded over 44 years ago as Babbage's, the company boasted over 6,000 locations globally at its peak in 2015, generating approximately $9 billion in annual sales. However, the shift to digital game sales over the past nine years has significantly impacted its fortunes. By February 2024, according to ScrapeHero, GameStop had slashed its physical presence by almost one-third, leaving roughly 3,000 stores in the US.
Following a December 2024 SEC filing hinting at further store closures, reports of shuttered locations have flooded social media. One Twitter user, @one-big-boss, expressed disappointment over the loss of his local store, a popular source for affordable games and consoles. He fears this closure foreshadows the demise of less profitable outlets. Employees have also voiced concerns, with one Canadian employee citing "unrealistic targets" imposed by upper management as stores are evaluated for closure.
The Ongoing Closure of GameStop Stores
The recent wave of closures continues 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 previous year following a nearly 20 percent (approximately $432 million) revenue drop in the fourth quarter of 2023 compared to 2022.
Over the years, numerous attempts have been made to revitalize GameStop, both internally and externally. As its customer base migrated online, the company experimented with diverse strategies, including expanding into merchandise, phone trade-ins, and even trading card grading. A surprising lifeline arrived in 2021 from a group of Reddit-based amateur investors, whose actions have been documented in the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money.
