Starting this month and rolling out throughout the summer, Best Buy will reduce its music sections to 12 feet from the current average of 32 feet of space, which will reduce their amount of physical cd’s count from 2500 to 1000 on average. Additionally, the Feature Wall (New Releases & Hits) will be reduced from 16 feet to 4 feet of space carrying only 48 titles.
This will be the first space reduction Best Buy has done in 3 years and currently on average only 60% of their bin space is full. The impact will be felt most in slower selling music catalogs due to the inline reduction and new releases that have limited sales potential at Best Buy that they would have normally taken a chance on but now will pass on going forward. How will this effect hip hop titles? What’s your thought
Best Buy does not anticipate an impact to their music revenue. Titles exiting the assortment will get price reduced and sold off before returned to us end of summer.