Monday, September 20

Another Step Closer To CD Extinction

You knew the day was coming and for retail outlets like Best Buy, Target, Walmart, etc the amount of space given for CDs isn't making sense anymore.

Best Buy plans to allocate less floor space to CDs and DVDs this fall, according to a report of a Tuesday conference call with analysts. No indication was given on the treatment of new release and catalog titles in this latest reduction of CD shelf space. Said CEO Brian Dunn:

“We’ll have another store reset before the holidays, which will include an increase in the space for higher-growth and, in the aggregate, higher-margin categories, like Best Buy Mobile, e-readers and gaming, with a heavy emphasis on new gaming platforms and pre-owned game titles. This will be enabled by our reorganization of the DVD and CD sections. The CD section in particular will shrink in space allotment.”

The extra space created by shrinking CD and DVD sections will help create a space for demonstrations of new motion-controlled video games, Microsoft’s Kinect and Sony’s Move.

Best Buy had a 8.7% share of the U.S. music retail market in 2009, according to Billboard estimates, down from 10.7% in 2008. Walmart had an estimated 12.5% share in 2009, down from 15% in 2008. Both retailers have consistently reduced the CD’s footprint in their stores. (

Source: Billboard

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