GameStop's Silent Store Closures Spark Concern
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 video game retailer. While GameStop hasn't publicly acknowledged a widespread closure initiative, social media platforms are buzzing with reports from affected customers and employees since the beginning of the year.
This marks a sharp downturn for a company with a 44-year history. Founded as Babbage's in 1980, GameStop boasted over 6,000 global locations and $9 billion in annual sales at its peak in 2015. However, the shift to digital game sales over the past nine years has drastically impacted its physical footprint. As of February 2024, ScrapeHero data indicates a nearly one-third reduction in GameStop's store count, with approximately 3,000 remaining in the US.
Following a December 2024 SEC filing hinting at further closures, reports of store closings have flooded platforms like Twitter and Reddit. Customers express disappointment, citing the loss of convenient, affordable game and console options. Employees also voice concerns, with one Canadian employee citing "unrealistic targets" as management evaluates store viability.
The Ongoing Decline of GameStop
The recent closures underscore GameStop's ongoing struggles. A March 2024 Reuters report painted a grim outlook, highlighting a 287-store closure in the preceding year and a nearly 20% revenue drop ($432 million) in the fourth quarter of 2023 compared to 2022.
Over the years, GameStop has attempted various strategies to combat its decline, including expanding into merchandise, phone trade-ins, and trading card grading. The 2021 Reddit-fueled investor surge, documented in Netflix's "Eat the Rich: The GameStop Saga" and the film "Dumb Money," provided a temporary lifeline, but the company's challenges persist. The silent store closures suggest a potentially bleak future for this iconic retailer.
