Summary

• GameStop is quietly closing stores in the US, leaving customers and employees shocked and disappointed.
• The decline of GameStop is evident as its physical locations have decreased by nearly a third.
• Customers and employees are sharing closures on social media platforms, hinting at a troubling future for the company.

GameStop, the world's largest physical retailer of new and used video games, is experiencing a wave of store closures across the United States, often without prior notice, leaving loyal customers in a state of shocked disappointment. Although there has been no official announcement from GameStop regarding an increase in store closures, customers and employees have been actively reporting their newly or soon-to-be-closed stores on social media since the beginning of the year.

Founded over 44 years ago as Babbage's, GameStop opened its first store in a Dallas, Texas suburb in August 1980, backed financially by former U.S. presidential candidate Ross Perot. By its peak in 2015, the brand boasted more than 6,000 locations worldwide and reported annual sales of approximately $9 billion. However, over the last nine years, the company's numbers have dwindled as game sales have shifted predominantly to digital formats. As of February 2024, GameStop's physical locations had 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 GameStop would close more stores in the near future, both customers and employees have taken to platforms like Twitter and Reddit to share their discoveries of closed locations. For instance, Twitter user @one-big-boss lamented the closure of his favorite store, which he viewed as a reliable source for affordable games and consoles. He noted that the store still appeared popular and successful, suggesting its closure could be a bad omen for less busy locations. Additionally, employees have voiced concerns, with one Canadian worker criticizing the "ridiculous goals" set by company executives as they decide which stores to keep open.

GameStop Customers Keep Seeing Stores Close

The recent reporting of closed GameStop locations underscores a continuing trend for the struggling game retailer. A March 2024 Reuters report predicted a bleak future for GameStop, noting that the company had closed 287 stores over the previous year. This followed fourth-quarter 2023 figures that showed a nearly 20 percent revenue drop, or approximately $432 million, compared to the same period in 2022.

In recent years, GameStop has explored various strategies to combat its declining customer base, which has increasingly turned to online game purchases. These efforts have included expanding into video game-related toys and apparel, as well as venturing into different industries like phone trade-ins and trading card grading. In 2021, the company received a significant boost from a group of amateur investors on Reddit, an event that has been documented in the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money.