Sainsbury’s To Phase Out Selling CDs And DVDs

The British supermarket giant Sainsbury’s will no more sell CDs and DVDs as the demand for these products has dwindled in the face of growing streaming services, the company said. The company’s customers were increasingly choosing to opt for music and films online than buying the shiny silver discs, said a spokesperson for Sainsbury’s.

The company was phasing out sale of CDs and DVDs even though the sale of vinyl records in some of its stores would continue, the company said.

Even though demand and sale of CDs have dwindled in the UK over the past decade, its market was still worth £115m last year.

Unlike Sainsbury’s, other big supermarkets are apparently not keen to follow the lead of the company with a range of CDs and DVDs still being stocked at the larger branches of Tesco, Asda and Morrisons.

“Our customers increasingly go online for entertainment, so earlier this year we took the decision to gradually phase out the sale of DVDs and CDs, so that we can dedicate extra space to food and popular products like clothing and homewares,” Sainsbury’s said.

It is undeniable that the CD – once the most preferred mode of buying and selling recorded music, has gone past its prime in its life cycle. The silver disc is now seen as unfashionable in many circles as it has been side lined first by the growth of the MP3 music file and then hit severely by streaming services such as Spotify and Deezer.

On the other hand, the vinyl record, which was the target of replacement of CDs, is witnessing resurgence in usage and demand in the UK. In 2020, the total number of the vinyl records sold in the market was 4.8 million which raked in total revenues of more than £86m.

That however was still lower than the revenues from the sale of CDs in the same period. However the total value of sale of record in 2021 is expected to surpass that of CDs – which will a first since the emergence of the CDs in the late 1980s, according to estimates of the British Phonographic Industry (BPI).

“The CD has proved exceptionally successful for nearly 40 years and remains a format of choice for many music fans who value sound quality, convenience and collectability,” said a BPI spokesperson.

“Although demand has been following a long-term trend as consumers increasingly transition to streaming, resilient demand is likely to continue for many years, enhanced by special editions and other collectible releases. If some retailers now see the format as less of a priority, this will create a further opportunity for others, such as independent shops and specialist chains such as HMV, to cater to the continuing demand.”

(Adapted from FlipBoard.com)



Categories: Economy & Finance, Strategy, Sustainability, Uncategorized

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