Gamestop Shutters More Stores After Closing 287 Locations: Are You Losing One?

GameStop has had some ups and downs in recent years, including an increase in store closures across the country.

The locations may have been a good option if you were trying to save money shopping for games, gaming equipment, and other video game options, but the retail chain has also had its struggles.

Here's why GameStop stores are closing and why your local GameStop could be next.

GameStop is a video game retailer with stores across the country and internationally as well.

Shoppers can go to GameStop for new releases, pre-owned products, video game consoles, collectibles, and more.

GameStop has been struggling with a disappointing earnings report in September, which is contributing to its woes.

Revenue didn't mean financial expectations for its second quarter, giving investors pause and causing its stock share price to decline.

One way GameStop believes it can slow down its decline and overcome its financial struggles is to shutter stores to cut expenses.

The company said it started "a comprehensive store portfolio optimization review which involves identifying stores for closure based on many factors, including an evaluation of current market conditions and individual store performance."

GameStop has yet to announce which stores will close, but it revealed in a statement accompanying its quarterly report that it doesn't have a specific number of locations or stores identified yet.

"While this review is ongoing and a specific set of stores has not been identified for closure, we anticipate that it may result in the closure of a larger number of stores than we have closed in the past few years," the company said in its statement.

GameStop garnered extra attention in recent years as a "meme" stock, becoming a heavily traded stock due to online influencers putting a spotlight on it through the website Reddit's WallStreetBets forum.

The move came during the COVID-19 pandemic when potential traders were online more often and following the highs and lows of particular stocks that came to be known as "meme" stocks.

The attention on GameStop's stock led to heavy trading of shares in early 2021, with the price spiking as the stock gained attention from everyday traders.

The stock briefly reached more than $480 during trading hours in January 2021 before falling back after the frenzy of attention inflated the price.

After the inflated prices and extra attention as a meme stock, GameStop ended up doing a four-for-one stock split in July 2022 to help reduce the cost of individual stocks.

The stock currently trades at around $20 a share. It saw a decline in its share price in September when news of its earnings miss and possible store closings reached investors.

GameStop could be a good option if you're looking for deals on video games and other video game-related products, but it might be a good idea to research what you want before you go to GameStop.

You may be surprised by how you could get ahead financially if you compare costs and potentially keep money in your wallet by shopping at another store or going online rather than going to GameStop first.