We had THREE of these fucking stores inside the Park City Mall in Lancaster, PA when I was growing up. Never could figure that shit out.
I remember when they were Electronics Boutique and sold Apple IIgs games 
Software Etc., Electronic Boutique, Funcoland all got bought by Gamestop. The problem was, like most retail mergers some strip-malls/malls/retail areas REQUIRE mergers to keep stores open for however long so they don't have to find a new tenant or business to take over places.
So, the problem is: Gamestop is like the borg/Starbucks where they buy (while Starbucks builds) new companies/competitors and merges their stores with the Gamestop national businesses. That's when you get the Starbucks-like situation where they have five stores within a one-mile radius.
So if anything, closing redundant stores will be good for Gamestop in regards to operating expenses. But HORRIBLE for some communities depending on area of development for foot-traffic/consumers.
But who knows, retail has been shrinking in areas beyond "LOL GAMES" for a bit due to online shopping. So dead strip-malls and store closings/reducing the spread of businesses is happening all over.
I mean, they're at least planning for and bracing for the future. That puts them about 20 steps ahead of most of the actual game companies.

Change stores to studios, and Gamestop to random publisher x and suddenly this thread's title describes a huge percentage of news headlines about the business side of this industry.
You're both half-right. Publishers are fucking up hugely. Gamestop at least is attempting to move to new markets and investments while the industry is changing/shrinking. Meanwhile publishers continue to do things as if business is normal when software sales/etc. have been declining year over year due to changing markets.
I will never forgive Gamestop for killing Electronics Boutique and Software etc. And FuncoLand.
I got a Descent 1 strategy guide for $.99 from Software Etc.

And a few Tomb Raider 2 holographic "trading"/collectors cards that I have around here somewhere. I dunno if they were going out of business/merging at the time (I don't think so) but that store is still in my fond memories for some "cheap" strategy guide dumping prices.