Published: Wed, February 07, 2018
Markets | By Rosalie Gross

The end of an era - Best Buy will no longer sell CDs

The end of an era - Best Buy will no longer sell CDs

While Best Buy has said they're just going to drop CDs cold turkey, Target is taking a slightly different approach.

The sources go on to claim that music CD sales are only bringing in about $40 million per year for Best Buy, which is apparently not enough to justify keeping them on shelves.

However, Billboard reports that stores will still carry vinyl records for the next two years to keep up a commitment made to vendors. Vinyl will be merchandised alongside turntables, Billboard's sources suggest.

More news: Iraq Announces Gradual Drawdown of US Forces

As music streaming services continue to flourish in the digital age, Consumer Affairs notes that 89 million units of CDs were sold in all of 2017 - compared to the 800 million sold in 2001. According to that report, Target would only pay music labels for CDs that are kept in stores until they are purchased by customers, rather than paying in advance and receiving a credit for unsold albums.

Now its system relies on taking inventory risk by paying for the CDs it gets within 60 days. Imagine walking into Target's electronics section and seeing no music and no DVDs... that is a definite possibility based on what Target has tossed over the fence at audio and video suppliers. That specific medium for music has seen a boost lately. Though Target only stocks 100 titles at any given time, it's still responsible for a sizable chunk of sales. With the death of the MP3, and people shelling out cash to use streaming services, the sale of physical copies makes even less sense for retailers.

Like this: