Best Buy in Bismarck to Stop Selling CDs This Year
Music suppliers have been informed that all Best Buy stores will pull CDs from their shelves starting July 1st.
At one time, Best Buy held the title of being the most powerful music merchandiser in the U.S. However, times have changed and their compact disc sales aren't providing nearly the same profits as they once had. The digital age has assisted in making this happen despite the fact that physical copies of consumers favorite music still sell relatively well globally.
In 2017, CD sales were down $18.5 million in the U.S. Best Buy's revenue from CDs sold is down to just $40 million annually, which may seem like a lot, but it's a stark decline from what the numbers once were. Best Buy will continue to sell vinyl over the next two years, fulfilling their commitment to turntable manufacturers.
Target is also looking to pullback sales for CDs somewhat. They're wanting to push for a consignment based sales platform. Basically, Target only wants to pay the music suppliers for the CDs they sell. A deadline has been passed on to music suppliers for this move for either April 1st or May 1st. However, no major labels have yet agreed to the 'scan-based' terms.
Stock up on the physical copies of music while you can, everyone. You're about to see a lot less music on retailers shelves.