Saturday , September 19 2020

Record Retailers Sucking Hosewater

News for the recording industry has been bad, it may be even worse for the retailers:

    Record store operators are pleased to report that rubber duck toys, talking Ozzy Osbourne action figures and CD storage cases are flying off the shelves.

    But a boom market in knickknacks won’t keep hundreds of stores from closing in the next few months as buyers shun their core product — recorded music.

    Best Buy Co. is expected to announce on Thursday the closure of about 150 of the roughly 1,300 Sam Goody and other stores in its Musicland division, according to insiders.

    The move by one of the country’s largest record store chains is only one in an anticipated round of closings prompted by last year’s 11% decline in album sales.

    Torrance-based Wherehouse Entertainment Inc. is expected to close 30 of its approximately 400 stores in the coming weeks, company executives said. Trans World Entertainment Corp., owner of FYE and other stores, plans to shutter about two dozen of its 900 locations. [LA Times]

Retailers are stuck in the middle of an undeclared war between the industry and consumers, and I feel for them. There is one solution, and it can only come from the industry: drastically cut the wholesale price of CDs so the retailers can pass on the cuts to the consumer and make enough profit to stay in business. People just won’t pay $15-$20 for your average CD anymore, there are too many alternatives. Superstar artists are going to have to suck it up and deal with accepting less as well because their contracts are driving the outrageous prices.

About Eric Olsen

Career media professional and serial entrepreneur Eric Olsen flung himself into the paranormal world in 2012, creating the America's Most Haunted brand and co-authoring the award-winning America's Most Haunted book, published by Berkley/Penguin in Sept, 2014. Olsen is co-host of the nationally syndicated broadcast and Internet radio talk show After Hours AM; his entertaining and informative America's Most Haunted website and social media outlets are must-reads: [email protected], Facebook.com/amhaunted, Pinterest America's Most Haunted. Olsen is also guitarist/singer for popular and wildly eclectic Cleveland cover band The Props.

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