GameStop's Silent Store Closures Spark Customer and Employee Outrage
GameStop, a once-dominant video game retailer, is quietly shuttering numerous US stores, leaving customers and employees shocked and dismayed. The closures, largely unannounced, represent a significant decline for the company, with almost a third of its physical locations disappearing.
Social media platforms are buzzing with reports from both customers and employees detailing store closures. This surge of anecdotal evidence paints a concerning picture of GameStop's future, despite the lack of an official statement from the company regarding increased closures.
Founded over 44 years ago as Babbage's, GameStop reached its zenith in 2015, boasting over 6,000 stores globally and generating approximately $9 billion in annual sales. However, the shift to digital game sales over the past nine years has significantly impacted its performance. By February 2024, ScrapeHero data indicated a nearly one-third reduction in GameStop's physical footprint, with roughly 3,000 stores remaining in the US.
Following a December 2024 SEC filing hinting at further store closures, social media channels like Twitter and Reddit have become forums for sharing closure news. Customers express disappointment, highlighting the loss of convenient, affordable gaming options. Employees, meanwhile, voice concerns about unrealistic performance targets as the company streamlines its operations.
The Ongoing Decline of GameStop
The recent wave of closures reflects a broader trend of decline for the retailer. A March 2024 Reuters report predicted a grim outlook, citing a 287-store closure in the previous year and a nearly 20 percent revenue drop ($432 million) in the fourth quarter of 2023 compared to 2022.
Over the years, GameStop has attempted various strategies to stay afloat, including diversifying into merchandise, phone trade-ins, and trading card grading. The company also benefited from a surge of support in 2021 from Reddit-based amateur 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 closures. The ongoing silent closures underscore the challenges facing GameStop in the evolving landscape of the video game industry.
