GameStop to Shutter Outlets in U.S.

GameStop's Silent Store Closures Spark Customer and Employee Outrage

The video game retailer GameStop is quietly shuttering numerous US stores, leaving both customers and employees reeling. This wave of closures represents a significant decline for the company, 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 GameStop's future.

Once the world's largest physical retailer of new and used video games, GameStop boasts a history spanning over 44 years, originating as Babbage's in 1980. Boosted by investment from Ross Perot, the company reached its zenith in 2015 with over 6,000 global stores and $9 billion in annual sales. However, the shift to digital game sales over the past nine years has severely impacted GameStop, resulting in a nearly one-third reduction in physical stores. As of February 2024, approximately 3,000 GameStop locations remained in the United States, according to ScrapeHero.

Following a December 2024 SEC filing hinting at further store closures, a surge of reports from both customers and employees flooded platforms like Twitter and Reddit. One Twitter user, @one-big-boss, expressed dismay over the closure of a seemingly successful local store, fearing this foreshadows the fate of less profitable locations. Employee concerns are also surfacing, with one Canadian employee citing "unrealistic targets" imposed by management during store assessment.

GameStop's Ongoing Struggle

The recent spate of closures reflects GameStop's ongoing decline. A March 2024 Reuters report predicted a grim outlook, highlighting the closure of 287 stores in the previous year, following a nearly 20% revenue drop ($432 million) in the fourth quarter of 2023 compared to 2022.

Over the years, GameStop has implemented various strategies to counter its dwindling customer base, including expanding into merchandise, phone trade-ins, and trading card grading. The company also experienced a temporary resurgence in 2021 thanks to a surge in interest from Reddit investors, a phenomenon documented in the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money. However, the recent store closures suggest these efforts have yet to stem the tide.