Thursday, 22 February, 2018

Best Buy to stop selling CDs by July 1

Mark Kauzlarich  Bloomberg via Getty Images
The Target Corp. logo is see at the entrance of a store at City Point in the New York City Mark Kauzlarich Bloomberg via Getty Images The Target Corp. logo is see at the entrance of a store at City Point in the New York City
Nellie Chapman | 06 February, 2018, 17:00

Best Buy recently announced that it will be pulling CDs from its stores due to an overwhelming drop in sales. Best Buy has reportedly agreed to continue to sell vinyl for at least the next two years, in part because of a partnership with turntable manufacturers.

American retailer Best Buy will bail on CDs later this year. Though the retailer's commitment to musical discs has also been in decline for sometime now, with physical music sales slumping fast in the USA than the UK.

In fact Best Buy isn't the only one feeling the pinch as the report claims that Target is also looking for a way to reduce their losses.

The company told music suppliers it plans to remove CDs July 1, according to Billboard. The deadline for that ultimatum would be either April 1 or May 1 for music suppliers, according to Billboard's sources. Currently, Target must pay net 60 with unsold product returned for credit. Revenues from CD shipments fell 3% to just more than $431 million, and vinyl albums increased 3% to end the period with revenue of $182 million. Even though media and music are my favorite forms of expression and consumption, they often aren't valued. No doubt this change in the CD's, shall we say, "modest remaining consumer base" contributed to Best Buy's decision. Have you already moved on to downloadable or streaming services?