CD Sales

It’s nothing new to say that cd sales are plummeting. A more interesting note though, is that retailers are beginning to assist this downfall. Wal*Mart just announced that it will begin rapidly decreasing shelf space for cd’s. They will replace the space with higher margin electronics items.

Wal*Mart will begin concentrating on obtaining exclusive rights to sell particular cd’s and corresponding merchandise. That is the case with the recent AC/DC album. But, as Wal*Mart consists of a pretty good chunk of current cd sales, this is sure to have a further impact on cd sales.

Another retailer adding to the decline will be Circuit City. They are set to close 155 stores by the end of this month, which will be a complete exit from 12 markets. They will now just have 566 stores.

CD sales have been a dying breed for a while. I do find it interesting though that Wal*Mart is taking a similar approach to cd sales as the companies doing 360 deals. They look at the cd as a way to sell corresponding merchandise that has a higher profit margin, such as t-shirts and teddy bears.

Stay tuned,
Erik
erikrostad.com