GameStop Closing Locations in the United States

Summary

• GameStop is closing numerous stores across the US without warning, leaving customers and employees shocked and disappointed.
• The company's physical locations have decreased by nearly a third, signaling a significant decline.
• Social media platforms are filled with reports from customers and employees about store closures, indicating a troubling future for GameStop.

GameStop, the largest physical retailer of new and used video games worldwide, is quietly shutting down many of its stores across the United States, often without any prior notice. This has left loyal customers feeling shocked and disappointed. Despite no official statement from GameStop about an increase in store closures, both customers and employees have been actively sharing reports of closed or soon-to-be-closed stores on social media since the beginning of the year.

Originally known as Babbage's, GameStop's journey began over 44 years ago in a Dallas, Texas suburb in August 1980, with financial backing from former U.S. presidential candidate Ross Perot. At its peak in 2015, the company boasted over 6,000 stores worldwide and generated approximately $9 billion in annual sales. However, the shift towards digital game sales has significantly impacted GameStop's physical presence. As of February 2024, the number of GameStop's physical stores has been reduced by nearly one-third, with around 3,000 stores remaining in the United States, according to data from ScrapeHero.

Following a December 2024 regulatory report filed with the Securities and Exchange Commission, which suggested more store closures were imminent, both customers and employees have taken to platforms like Twitter and Reddit to share their experiences with closed locations. 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 still seemed popular and successful, raising concerns about the future of less-busy locations. Additionally, some employees, including one from Canada, have voiced frustrations over "ridiculous goals" set by the company's higher-ups as they decide which stores to keep open.

GameStop Customers Keep Seeing Stores Close

The trend of reported GameStop store closures continues to reflect the retailer's ongoing decline. A March 2024 Reuters report predicted a bleak future for GameStop, noting that the company had closed 287 stores in the previous year. This followed a fourth-quarter 2023 performance that saw a nearly 20% revenue drop, or approximately $432 million, compared to the same period in 2022.

In response to the shift of its customer base towards online gaming purchases, GameStop has explored various strategies to stay afloat. These efforts have ranged from expanding into video game-related toys and apparel to venturing into different 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 documented in the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money. Despite these efforts, the future remains uncertain for GameStop as it navigates the challenges of a rapidly changing retail landscape.