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 publicly acknowledged a widespread closure initiative, social media platforms are buzzing with reports from affected customers and employees since the beginning of the year.
This downturn marks a sharp contrast to GameStop's peak in 2015, when it boasted over 6,000 global locations and nearly $9 billion in annual sales. However, the shift to digital game sales over the past nine years has significantly impacted the company's performance. Data from ScrapeHero indicates that GameStop's US store count has plummeted by almost one-third, currently standing at approximately 3,000 locations as of February 2024.
Following a December 2024 SEC filing hinting at further store closures, both customers and employees have taken to platforms like Twitter and Reddit to share their experiences. One Twitter user expressed dismay over the closure of a seemingly successful local store, fearing this signals trouble for less profitable locations. Employee accounts also paint a concerning picture, with reports of unrealistic sales targets amidst store closure assessments.
The Ongoing Decline of GameStop
The recent closures are part of a broader trend reflecting GameStop's struggles. A March 2024 Reuters report painted a grim outlook, citing a 287-store closure in the preceding year and a nearly 20% revenue drop in the fourth quarter of 2023.
Over the years, GameStop has attempted various strategies to revitalize its business, including expanding into merchandise, phone trade-ins, and trading card grading. The company also benefited from a surge in interest from amateur investors in 2021, 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 declining physical sales. The silent closure of numerous stores underscores the ongoing challenges facing this iconic retailer.
