In a new announcement, Best Buy has informed music suppliers that it plans to pull all CDs from its store shelves starting July 1st. According to sources, the company was only generating around $40 million annually in CD sales, a sharp decline from what was once a billion dollar offering for Best Buy. The company will continue to carry vinyl records for the next two years, following a commitment it made to suppliers. Target is also rumored to be discontinuing its in-store CD sales. Sources say that the company is trying to renegotiate with music suppliers to sell CDs on a consignment basis. While currently, Target takes an inventory risk by agreeing to pay for all its bulk CD purchases upfront, consignment shifts the risk back onto labels and distributors. CD sales were down 18.5% in the U.S. last year.
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