A couple of Borders stores I have been into in the past week have been running massive CD sales. I have been told they are getting out of selling music. If correct, this is a major shift to the Borders model. Music has been a core category since the international retail brand began. When I first saw a Borders store in the US many years ago I marvelled at their approach – it was the same as magazines and books. You could try a whole album, for as long as you liked, before you bought.
Their apparent decision to quit music is probably a reflection of the maturity of the online music model. People can more easily buy songs than whole CD. Devices like the iPhone and iPad make buying easy and fast – no long retail queues, no packaging, no wastage.
Music retail has changed dramatically since the launch of the iPod. It appears that the changes are not over yet.
The factors which have impacted music retail are playing out for print. The tipping point for print products will prove to be the devices. Once they are right in the minds of consumers the mass exodos will begin.
Borders selling peoples friend my weekly for $3.8 not $3.0
Suits me, last month sold $1K worth of CD’s and growth is 6%.
Apparently they are getting out of CD’s as they can’t compete with the prices that JB HiFi offer to consumers.
That’s the problem when all you compete on is price, we’re like you Brett in that our sales are going up and up as the likes of Dymocks, Borders quit Cd’s. Were not stupid to think that we too one day will get out but for now we are loving it. The same goes for DVD’s
DVD’s here as well Luke, we wont retire on their sales alone but its another 10-20 $ a customer from time to time.
recommendations for dvd suppliers?
From my point of view Impulse is starting to get their act together, also see Madman for overall range. They want to know the ins and outs of a duck’s bum before they give terms but who doesn’t these days