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Best Buy announces plans to pull all CDs from stores
March 23 2018, 01:27 | Alonzo Simpson
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
United States analysts claim that the Best Buy move is more a formality at this point for the USA retailer, whose once formidable, traffic-driving CD assortment has long since been usurped by streaming media and more productive categories in-store. Music labels are apparently waiting to see how DVD manufacturers react.
According to Billboard, the retail giant is telling music suppliers that "it will pull CDs from its stores come July 1".
CDs are far superior than digital downloads in a variety of ways, including high fidelity audio, liner notes, lyrics, etc., but most people have turned to streaming and downloads to consume music. Target may also join the anti-CD movement. Physical music is only generating around $40 million in annual revenue for the company and executives would rather dedicate the floor space to more lucrative items, Billboard notes.
It's perhaps no surprise, then, that Best Buy is looking to end its music CD sales entirely. Although it remains a niche market in the grand scheme of things, new vinyl and high-dollar reissues made up a whopping 14 percent of physical album sales in 2017. Target wants to change the way that it pays suppliers for its CD inventory. Evidently, the retailer is now demanding that music suppliers agree to buy back any CDs that aren't sold within a 60 days.
Meanwhile, Target is reportedly pressuring record companies into signing consignment agreements. The magazine reports at least one label is balking at the idea, which could box Target into making a decision on whether or not to keep selling CDs or DVDs.