There's a lot of misunderstanding here of how location and tracking on Android actually works.
First of all, google play store has nothing to do with it. It's google play services that provides location services and implements location tracking in Android. That's the service that is used to retrieve AGPS data from the net, to correlate nearby wifi and mobile masts with lists held on google's servers to give location without GPS, and yes to provide tracking data on your location to google. Setting the location mode to "GPS Only" or similar is supposed to disable much of the tracking, but I'm not sure how much I'd trust that.
Play services is a pretty core component of Android, and an awful lot of things will cease to function if you manage to remove it. You can block play services from accessing your location using 3rd party tools like XPrivacy, but location for most apps will cease to function without a complex set of workarounds.
If you genuinely don't want your Android phone calling home with your location while still being able to use GPS, you need:
- Root access
- Xposed framework installed
- XPrivacy installed and set to block location access for google play services
- To remove google maps
- To have a fuck of a lot of patience