GameStop's Silent Store Closures Spark Concern
GameStop is quietly shuttering numerous US stores, leaving customers and employees surprised and disheartened. The closures represent a significant decline for the once-dominant retailer, with nearly a third of its physical locations disappearing. Social media platforms are filled with posts from affected customers and employees, highlighting a worrying trend for the company's future.
The world's largest brick-and-mortar video game retailer, GameStop (formerly Babbage's), boasts a 44-year history. Founded in 1980 in a Dallas suburb with backing from Ross Perot, it reached its peak in 2015, operating over 6,000 stores globally and generating approximately $9 billion in annual revenue. However, the shift to digital game sales over the past nine years has significantly impacted GameStop, resulting in a nearly one-third reduction in physical stores. As of February 2024, ScrapeHero data indicates around 3,000 GameStop locations remain in the US.
Following a December 2024 SEC filing hinting at further store closures, both customers and employees have taken to Twitter and Reddit to report store closings. One Twitter user, @one-big-boss, expressed disappointment over the closure of a seemingly successful local store, fearing this signals trouble for less profitable locations. Employee accounts also surface, with one Canadian employee citing "ridiculous goals" imposed by upper management as stores are evaluated for closure.
The Ongoing Closure of GameStop Stores
The recent wave of closures continues a downward trend for the struggling retailer. A March 2024 Reuters report painted a grim outlook, noting 287 store closures in the previous year, following a nearly 20% (approximately $432 million) revenue drop in the fourth quarter of 2023 compared to 2022.
Numerous rescue attempts have been made over the years, both internally and externally. As its customer base migrated online, GameStop experimented with various strategies, including expanding into video game merchandise, phone trade-ins, and trading card grading. The company also received a significant boost in 2021 from a group of Reddit investors, a story documented in Netflix's "Eat the Rich: The GameStop Saga" and the film "Dumb Money."
