GameStop is quietly shuttering numerous US stores, leaving customers and employees stunned and disheartened. This wave of closures underscores GameStop's significant decline, with its physical footprint shrinking by nearly one-third. Social media platforms are buzzing with customer and employee accounts of store closings, painting a concerning picture for the company's future.

The world's largest brick-and-mortar retailer of new and used video games, GameStop boasts a history spanning over 44 years, originally operating under the name Babbage's. Launched in a Dallas suburb in August 1980 with the financial backing of Ross Perot, GameStop reached its zenith in 2015, boasting over 6,000 global locations and approximately $9 billion in annual sales. However, the past nine years have witnessed a sharp downturn, largely attributed to the digital shift in game sales. By February 2024, according to ScrapeHero, GameStop's physical store count had plummeted by almost a third, leaving roughly 3,000 locations in the US.

Following a December 2024 SEC filing hinting at further store closures, both GameStop customers and employees have been reporting closed locations on platforms such as Twitter and Reddit. One Twitter user, @one-big-boss, mourned the closure of a favorite store, highlighting its popularity and expressing concern about the implications for less-successful locations. Employee accounts also reveal anxieties, with one Canadian employee citing "ridiculous goals" imposed by upper management as they determine which stores to retain.

GameStop Store Closures Continue

The recent spate of GameStop closures reflects a persistent downward trend for the struggling retailer. A March 2024 Reuters report predicted a grim outlook for GameStop, citing the closure of 287 stores in the previous year, following a nearly 20 percent, or roughly $432 million, revenue drop in the fourth quarter of 2023 compared to the same period in 2022.

Over the years, various internal and external rescue plans have been attempted. As its customer base migrated to online gaming, GameStop explored diverse strategies, including expanding into video game-related merchandise, phone trade-ins, and trading card grading. The company also received a temporary boost in 2021 from a surge of amateur investors on Reddit, a phenomenon documented in the Netflix documentary Eat the Rich: The GameStop Saga and the film Dumb Money.