End of an era? Best Buy set to stop selling CDs

And Target could follow.
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What's happening?

Best Buy is reportedly going to stop selling CDs, with Billboard reporting the Richfield-based retailer has informed music labels it will pull them from its stores on July 1.

It will continue to sell vinyls for a further two years, the website notes, honoring commitments it has made to vendors.

Is this surprising?

Not really. Ever since the advent of music streaming and the introduction of the iPod, CDs have been on borrowed time.

That said, it was only in 2014 that digital music sales outstripped CDs for the first time, according to Motherboard, so they have remained pretty resilient despite the rise of online sales.

Billboard says CDs now only make up about $40 million of Best Buy's sales, whereas in the past it was one of the core pillars of its business.

This is another step in what is looking like a much-different future for the electronics retailer.

GoMN spoke to retail experts in summer 2016, who said that in 5-10 years time they expect products like CDs and DVDs to disappear from Best Buy's shelves.

The rise of online giants like Amazon are eating into Best Buy's business, but it still has a big role to play in the electronics market going forward thanks to the success of its Geek Squad.

Will Target follow?

Another Twin Cities retailer, Target, is also considering major changes to its CD offering, according to the same Billboard report.

The Bullseye is rumored to have issued an ultimatum to labels that would see it implementing consignment-based sales – only paying for the CDs that it sells, rather than its current model of paying for all the CDs it is shipping within 60 days.

GoMN has contacted Target for comment.

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