GameStop Shuttering Stores Nationwide

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 officially confirmed 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.

This downturn marks a sharp contrast to GameStop's peak in 2015, when it boasted over 6,000 global locations and nearly $9 billion in annual sales. However, the shift to digital game sales over the past nine years has significantly impacted its business. According to ScrapeHero, GameStop's US store count has plummeted by almost a third, currently standing at approximately 3,000.

Following a December 2024 SEC filing hinting at further store closures, anecdotal evidence from both customers and employees has flooded social media. One Twitter user expressed dismay at the closure of a seemingly successful local store, fearing it foreshadows the fate of less profitable locations. Meanwhile, a Canadian employee cited "ridiculous goals" imposed by upper management as they evaluate store viability.

The Continuing Decline of GameStop

The recent closures continue a troubling trend for the struggling retailer. A March 2024 Reuters report painted a grim picture, highlighting a 287-store closure in the preceding year and a nearly 20% revenue drop in Q4 2023.

Over the years, GameStop has implemented various strategies to revitalize its business, including expanding into merchandise, phone trade-ins, and trading card grading, to little avail. The company also received a temporary boost 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, these efforts haven't been enough to stem the tide of declining physical sales. The ongoing store closures raise serious questions about GameStop's long-term viability.