Billboard reports CD sales only amount for about $40 million annually throughout the entire company, a paltry sum compared to what the chain used to make. Under the proposed new system, however, Target would only have to pay for CDs after they have been scanned at the register and sold to customers, placing all of the risk on the music suppliers. Evidently, the retailer is now demanding that music suppliers agree to buy back any CDs that aren't sold within a 60 days.
Target is also considering pulling the format from its shelves, though are bargaining with labels over the decision. Any unsold merchandise is shipped back to the labels, again at the store's expense. According to the report by Billboard, Target sold more than 500,000 copies of Reputation by Taylor Swift since November 2017 its release date.
The once commonplace digital music format is getting hammered in the US. One music manufacturer is leaning towards saying no to this deal, according to Billboard. Though Target only stocks 100 titles at any given time, it's still responsible for a sizable chunk of sales.
While Best Buy has said they're just going to drop CDs cold turkey, Target is taking a slightly different approach. For example, previous year Target moved 500,000 copies of Taylor Swift's latest, Reputation. "Entertainment has been and continues to be an important part of Target's brand", says the company in a statement. Perhaps in the future a new generation of audiophiles will reignite interest in CDs and we'll have CD Store Day.
What do you think about big box stores dropping, or at least threatening to drop physical music CDs?