Best Buy To Stop Selling CDs, Target To Pay Labels Only When Customers Buy CDs

Billboard.com reports that the Best Buy will stop selling CDs in their retail stores as of July 01st, 2018. Sources suggest that the company’s CD business is nowadays only generating about $40 million annually. However, Best Buy will continue to carry vinyl for at least next two years, keeping a commitment it made to vendors.

Billboard also report that rival retailer Target has apparently given an ultimatum to labels/distributors that they shift to a consignment model, thus putting the risk of unsold product after a certain time period on back on the label/distributors. Currently, Target takes the inventory risk by agreeing to pay for any goods it is shipped within 60 days, and must pay to ship back unsold CDs for credit. With consignment, the inventory risk shifts back to the labels.

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