Best Buy to stop selling CDs this summer

Best Buy to stop selling CDs this summer
Posted at 3:39 PM, Feb 05, 2018
and last updated 2018-02-05 11:17:20-05

(RNN) - One major U.S. retailer plans to do away with CDs as soon as this summer.

Music merchandise giant Best Buy will pull CDs from its shelves on July 1, according to Billboard.

Revenues from CD shipments are down 3 percent to $431 million, while vinyl albums were up 3 percent to $182 million, according to Billboard.

CDs are only generating $40 million in sales annually for Best Buy.

Best Buy will continue to carry vinyl, which will be merchandised with turntables.

In addition, Target demanded music suppliers take the inventory risk on CD sales. Currently, Target pays in advance for the CDs. 

When CDs aren't sold, Target must pay to ship them back for credit, Billboard said.

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