Sherman will start his gig on April 15, replacing interim chief executive Shane Kim.
Sherman was also president and interim chief executive at Advance Auto Parts, overseeing the business of 4,000 stores and was president of Best Buy (BBY) - Get Report Services. Earlier, he ran the operations and home services divisions of Home Depot (HD) - Get Report . Before that, he was at Target Corp. (TGT) - Get Report . He also served in the Air Force for more than six years and holds a master's degree from Central Michigan University.
"We are very excited to welcome George to the GameStop team. His extensive retail leadership at several top brands including Advance Auto Parts, Best Buy, Target Corporation and Home Depot positions him as the right choice to lead GameStop for the years ahead," said Dan DeMatteo, GameStop's executive chairman, in a statement.
But, "A new CEO is only exciting if they acknowledge that the business model is broken. The days of a selling physical games are fast coming to an end," said TheStreet's Zev Fima, a research analyst for Jim Cramer's Action Alerts PLUS investment club.
"It's not over for them, but they need to radically shift their business model. Forget selling games. I wouldn't be surprised if the next generation of consoles doesn't even include a disk drive," Fima said.
Fima suggested loading stores with the "latest and greatest gaming hardware" to offer to customers.
"Rent out time to play the games instead. Run eSports tournaments, offer lessons, reinvent the arcade model just as today's modern LAN centers have. Look at Helix eSports in New Jersey, or VR World in Manhattan, they get it," he said.
Headquartered in Texas, GameStop is a video game and consumer electronics retailer, with 5,800 stores in 14 countries.
GameStop shares rose 0.48% Thursday to close at $10.55 -- following a steady decline from Jan. 25 when the shares were trading at $15.90.