Digital downloads and the rapid growth of online retail have sounded the death knell for the ABC's national network of stores.

ABC managing director Mark Scott said the bedrock of the ABC stores, book, CD and DVD retailing, had fundamentally changed and the 35-year-old chain could not trade profitably into the future.

“We know people have loved these shops, [but] you cannot take money from broadcasting to prop up this retail chain,” he said.

Garry Evans from the Harbour Bookstore in Rowen’s Arcade, which sells ABC products, said it would “business as usual” despite the closures.

“We love the ABC brand and the great range of products will be available as normal,” he said.

“We are thinking of all our colleagues in the ABC Shops and administration.”

Mr Scott said the ABC was not prepared to take money out of its broadcasting operation to fund an unprofitable retail venture.

Up to 300 staff will lose their jobs as a result of the decision as the shutters come down on the network of 50 stores and 78 ABC centres within other retailer outlets around Australia.

It follows $254 million in funding cuts to the ABC's budget, which has already resulted in the loss of more than 400 jobs at the broadcaster.

The stores will gradually close depending on lease terms but Mr Scott said the ABC shops would likely trade through Father's Day and even Christmas.

Harbour Bookstore recently celebrated its 15th birthday and Garry said the store continues to survive and thrive despite dire predictions about the future of book publishing in the face of electronic communications and e-books.