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 acknowledged a widespread closure initiative, social media platforms are buzzing with reports from affected customers and employees since the beginning of the year.
GameStop, originally known as Babbage's, boasts a 44-year history. Reaching its zenith in 2015 with over 6,000 global locations and $9 billion in annual sales, the company has faced a dramatic downturn in recent years. The shift to digital game sales has significantly impacted its business model. As of February 2024, ScrapeHero data indicates a nearly one-third reduction in physical stores, leaving approximately 3,000 locations in the US.
Following a December 2024 SEC filing hinting at further store closures, a wave of social media posts from both customers and employees has emerged, detailing the closures of their local stores. One Twitter user expressed concern over the closure of a seemingly successful location, fearing it foreshadows the fate of less profitable stores. Employee accounts also reveal internal struggles, with one Canadian employee citing "ridiculous goals" set by upper management as store viability is assessed.
The Ongoing Decline of GameStop
The recent closures reflect a broader trend of decline for GameStop. A March 2024 Reuters report painted a grim picture, highlighting a 287-store closure in the previous year following a nearly 20% revenue drop ($432 million) in the fourth quarter of 2023 compared to 2022.
Numerous attempts to revitalize GameStop have been made over the past few years. Facing a dwindling customer base migrating to online purchases, the company has explored diversification, including expanding into merchandise, phone trade-ins, and trading card grading. The 2021 intervention by Reddit-based amateur investors, documented in "Eat the Rich: The GameStop Saga" and "Dumb Money," provided a temporary reprieve, but the challenges persist.
