The last time I went into a Best Buy was after the Mario movie came out on blue ray. Went in on release day, completely sold out. Never got restocked.
It's not all Best Buy's fault here since they don't control the supply.
I've noticed this decade that the studios are printing less and less physical media. And then when sales #'s are low they're using that as a justification to further reduce physical sales. What those reports very rarely reference though is the volume of sales vs unsold media. Back in the 00's they made more than they expected to sell and the rest entered the "product inventory stream" or whatever you want to call it, it sat in Inventory and eventually it made everyone money when it finally sold. I don't know the details but I know that in the 2010's the amount of time they would let something sit in inventory without selling was drastically reduced.
Now BB has stopped selling almost all entertainment media. -They- choose to remove DVD's and CD's, and it's a weird decision for a lot of reasons. They'd invested into companies that produced steel books and other releases exclusives to their stores - all that investment is now written off. New release Tuesdays literally got people in the door over the last 20 years. I've never seen my local BB not have stuff sell out instantly on release all the way up to removal week. So what changed?
That movie sales had to have slowed down enough for it not to be worth it to carry movies makes a lot more sense if the problems are on the supply side. If the studio's are going to continue pushing to end physical sales through just not making them anymore, NETFLIX I'm looking at you, it makes sense to exit. If you know that sector is going to continue to decline and hurt your own profit margin, why have it anymore?
And all that is ignoring that physical game sales are facing the exact same pressures. "I live in the middle of no where and have crap internet" isn't a thing for people with decent money anymore, Star link saw to that. And as much as I love physical media for gaming, post PS4 era it doesn't matter as much as it used to for brand new games. Hell, if anything you're saving time by buying the digital version because you still have to (*&^ing download updates and install the game it if you buy the disc. Those GOTY editions and collections with all the DLC's though? Those were the gold star of physical media in the online era and they're starting to not make them for newer games. And that's completely ignoring the app stores, Fortnite, a whole bunch of stuff.
TL;DR - we're going on 18 years of people being able to buy games without going to the store, and some of the most profitable games don't have a physical version to buy.
Add to that as others have said everything that's disappeared into newer technology over the years:
No more -
video cameras,
photo cameras,
personal cassette recorders,
desk telephones or wireless telephones,
cd/music players/boomboxes
oh yes and no more CD's, DVD's, or Blu Rays, and
TV's adjusted for inflation cost less than they ever were and aren't the only screen in the home anymore -
and you get maybe half of what was in a BB in 2004 that just doesn't exist anymore for them to sell. A lot of what they carry allows you to spend money at digital stores where they do not capture anything related to those sales. They leaned heavy into home theatre and that market is saturated on multiple fronts so it's not surprising it's being cannibalized first. Over the years more and more of the products they sold became obsolete, and that's not something you can really control as a retail distributor - you keep up with the products that are available. And they did. It happens that what one store has is pretty much what everyone else has these days and "where" you bought it from stops mattering as much as how easy it is to buy the thing and what benefits you get from where you buy it.
Side note: A big irony here is that Netflix used to goose their subscriptions by giving BB money for pushing Netflix.
And now BB is suffering partly because the people like Netflix who supplied them goods to sell are trying to kill the sale of physical media to buy and have a financial incentive for doing so.