In what can be considered a sign of the times, Best Buy has reportedly told music supplies that it is phasing out sales of physical CDs. Physical music sells well worldwide but the sales are lagging in the United States, where CD sales went down to 18.5 percent causing some retailers to give up on the format altogether. It's issued an ultimatum to music suppliers which will force them to take on all inventory risks for unsold discs.
Revenue from digital music downloads surpassed CDs in 2014, and CD revenue has continued to decline. This way, Target would only have to pay for items that have actually sold. Music labels are apparently waiting to see how DVD manufacturers react.
Target used to carry more than 800 CD titles, but seems to have reduced its stock to less than 100 titles.
You know those CDs you no longer buy? Even still, one major label has already turned down Target's demands, while two others are undecided, according to Billboard.
What do you think about big box stores dropping, or at least threatening to drop physical music CDs?
Today JB Hi Fi has a far more "flexible racking solution" in its store claims Murray and this allows individual stores to configure the CD and gaming racks to get maximum results.