- Wal-Mart Stores is rapidly downsizing shelf space for music CDs while increasing availability of Blu-ray and consumer electronics in select locations, according to a new report.
The Bentonville, Ark.-based retail behemoth, citing a 23% drop in CD sales during the first four weeks of the fourth quarter, continues to scale back inventories of music packaged media; supplanting it with electronics and movies.
"We believe Wal-Mart is increasing its exposure to consumer electronics, video games and Blu-ray, and reducing floor space devoted to CDs and standard DVDs," said Richard Greenfield
, analyst with Pali Capital, in a note.
Greenfield said the chain's floor space devoted to DVD, including Blu- ray, ranged from up modestly to down slightly.
Pali reported that an accelerated rate of sales decline for CDs combined with the slowing of digital unit sales had resulted in Q4 total unit sales declining 11.6%, compared to a 11.3% decline during the previous year period.
Total music sales fell 5% to 7% in the first three quarters of 2008.
In an analyst meeting last week, John Fleming
, chief marketing officer with Wal-Mart, said electronics would be getting space expansion in stores due to the decline in physical packaged media.