This story sums it up pretty good. Although it says a 1/3 of the stores, from what I hear it will eventually be all stores.

http://www.foxnews.com/story/0,2933,191818,00.html

They are basically trying to become a bigger Target type of store. I will say I think the decision to move away from rural America is a stupid one.

They cite demand is low but you can bet it is for a lot of other reasons as well such as the hassle of selling guns in the first place due to all of the gun laws. In the end it is all about the money. This isn't their only problem. The huge home improvement centers such as Lowes and Home Depot are giving them a lot of competition as well.