Any physical location that sells goods is a retailer unless they are a wholesaler. Size is irrelevant as is the experience. For instance a Walmart is a general goods retailer. Basically the modern incarnation of the general store. Other retailers are specialty goods or service a specific market. EB games for instance is a specialty retailer they service a specific demographic of the public.
Those individual retailers, or specialty chains are very dependent on the patronage of their target demographic. They cannot spread out the loss. You will not find a frozen food section in a Gamestop. Further more games are not a high profit item, or a generally consumed item. They generate less money then most items, and further more the majority of consumers do not game. This is why many of these stores promote their trade in options. They need those to generate money.
A good retailer knows their market, and more specifically they try to meet their demands. When a retailer runs out of a product that is bad for business. Customers do not like that. That is also lost sales. Some markets are small, and other markets are large. Not everyone gets the same shipment.
Most AAA games will sell a fantastic margin in their first week. Every week after that the sales go down. A retailer would rather enjoy the initial rush. That rush sells more in the way of games, and more in the way of other products. Once the hype is over that surge of other sales decreases. Any retailer worth their salt wants the surge. The mob mentality can sell a lot more merchandise. There is more then the game there is the hunger that comes through the door with the consumer. Arouse the animal instinct.
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