GameStop's Silent Store Closures Spark Customer and Employee Concerns

The video game retailer GameStop is quietly shuttering numerous US stores, leaving both customers and employees surprised and disheartened. This wave of closures represents a significant decline for the company, with its physical footprint shrinking by nearly one-third. Social media platforms like Twitter and Reddit are buzzing with reports from affected customers and employees, painting a concerning picture of GameStop's future.

Once the world's largest physical retailer of new and used video games, GameStop boasts a 44-year history, beginning as Babbage's in 1980. 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 GameStop's performance, resulting in a substantial reduction in its physical store count. As of February 2024, ScrapeHero data indicates a nearly 33% decrease, leaving approximately 3,000 stores operating within the US.

Following a December 2024 SEC filing hinting at further store closures, a surge of reports from both customers and employees detailing closed locations has emerged online. Disappointment is widespread, with some expressing concern over the closure of seemingly successful stores, foreshadowing potential closures of less profitable locations. Employee accounts also reveal internal struggles, including complaints about unrealistic performance targets amidst store closures.

The Ongoing Decline of GameStop

The recent closures are part of a larger trend reflecting GameStop's ongoing struggles. A March 2024 Reuters report predicted a gloomy outlook, citing a 287-store closure in the previous year and a nearly 20% revenue drop ($432 million) in the fourth quarter of 2023 compared to 2022.

Over the past few years, various strategies have been implemented to revitalize the company, including diversification into related merchandise (toys, apparel) and unrelated ventures (phone trade-ins, trading card grading). The 2021 intervention by a group of Reddit investors, documented in the Netflix documentary "Eat the Rich: The GameStop Saga" and the film "Dumb Money," provided a temporary lifeline, but the company's challenges persist.