GameStop Closing Locations in the United States

GameStop's Silent Store Closures Spark Concern

The video game retailer GameStop is quietly shuttering numerous US stores, leaving customers and employees reeling. The closures, often announced with little or no warning, represent a significant decline for the once-dominant physical retailer. While GameStop hasn't publicly acknowledged a widespread closure initiative, social media platforms like Twitter and Reddit are buzzing with reports from affected customers and employees since the beginning of the year.

GameStop, originally known as Babbage's, boasts a 44-year history. Reaching its zenith in 2015 with over 6,000 global locations and $9 billion in annual sales, the company has faced a dramatic downturn in recent years. The shift to digital game sales has significantly impacted its business model. As of February 2024, ScrapeHero data indicates a nearly one-third reduction in GameStop's physical footprint, with approximately 3,000 stores remaining in the US.

Following a December 2024 SEC filing hinting at further store closures, anecdotal evidence from both customers and employees continues to surface online. One Twitter user expressed dismay over the closure of a seemingly successful local store, fearing it foreshadows the fate of less profitable locations. Employee accounts also reveal concerns, with one Canadian employee citing "ridiculous goals" imposed by upper management as store viability is assessed.

The Ongoing Decline of GameStop

The recent closures are part of a larger trend reflecting GameStop's struggles. A March 2024 Reuters report painted a grim outlook, citing a 287-store closure in the previous year and a nearly 20% revenue drop ($432 million) in the fourth quarter of 2023 compared to 2022.

Over the past few years, various strategies have been implemented to revitalize GameStop. Attempts to diversify beyond video games, including expanding into toys, apparel, phone trade-ins, and trading card grading, haven't stemmed the tide. The company also received a temporary boost in 2021 from the Reddit-fueled investor frenzy, a phenomenon documented in the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money. However, the recent wave of closures suggests these efforts haven't been enough to reverse the company's fortunes.