As the digital age of music only continues to get stronger, the idea of going out to your favorite store and purchasing a CD seems like an archaic idea. As compact discs face extinction retailers are suffering the most.
In a recent announcement, big-box retailer Best Buy has informed music suppliers that it will move forward with plans to remove CDs from its shelves July 1. However, due to their commitments with suppliers the company will continue to offer vinyl records for the next two years. Best Buy experienced a drastic collapse from what was once a flourishing piece of their business, seeing billion dollar sales decline to $40 million annually.
The company had become synonymous with CD sales as the number of stores in the U.S. reached the 600 mark in 2003.
However, digital sales have all but taken over in the U.S. market as CD sales were down 18.5 percent in 2017 and Best Buy who once ruled music merchandising; was truly impacted by the significant decrease.
According to sources at Billboard, Target may be the next big-box retailer to discontinue sales of CDs. The company is trying to negotiate a cosignment deal with labels and distributors. This kind of deal will relieve Target of the pressure to deliver on large purchases and shift it back to the distributors.
Unfortunately for Best Buy and their beloved customers, no such deal will be met for the Richfield, Minnesota retailer.
Leave a Comment