Central Scrutinizer Posted May 11, 2009 Share Posted May 11, 2009 From NY Post http://www.nypost.com/seven/04272009/busin...inyl_166384.htm Best Buy is giving vinyl a spin. The consumer-electronics giant, which happens also to be the third-largest music seller behind Apple's iTunes and Wal-Mart, is considering devoting eight square feet of merchandising space in all of its 1,020 stores solely to vinyl, which would equate to just under 200 albums, after a test in 100 of its stores around the country proved successful. Though vinyl represents less than 5 percent of Best Buy's music sales, the format is growing while CD sales continue to shrink. Vinyl sales grew 15 percent year-over-year in 2007 and 89 percent in 2008, making the 1.9 million vinyl albums purchased last year the most since Nielsen SoundScan began tracking sales in 1991. This year is shaping up to be even better, with 670,000 vinyl albums sold through mid-April. By contrast, CD sales have fallen at a roughly 20 percent clip for the past few years. To be sure, the growth in vinyl, even when combined with digital sales, isn't enough to offset the decline in CD sales. But it does show that consumers haven't abandoned the physical format. And the fact that a retailer of Best Buy's size is willing to expand vinyl offerings is an incremental positive for the beleaguered music industry. A typical Best Buy store features about 16 square feet to 20 square feet of music merchandise and displays about 8,000 CDs. "Our goal is to occupy as much square footage as possible with music products," said Atlantic Records CEO Craig Kallman, whose personal vinyl collection numbers more than 300,000, making it one of the largest private collections in the world. Hoping to capitalize on the renewed interest in vinyl, all of the major record labels have combed through their catalogs to remaster and re-release marquee titles with their original artwork and packaging -- both of which are essential elements for the vinyl consumer. For instance, EMI in September 2008 launched its "From the Capitol Vaults" vinyl initiative with such titles as The Beach Boys' "Pet Sounds," Jimi Hendrix's "Band of Gypsies," and Radiohead's "OK Computer." Compared with a CD, vinyl costs more to make and retails for a higher price -- $22.95 vs. around $13.99 for a CD -- but has lower margins. Both Kallman and Jason Boyd, EMI's senior director of catalog sales, said profits made from vinyl were acceptable enough to warrant producing the format. The situation is the reverse for Best Buy. Chris Smith, the company's senior music merchant, said margins on vinyl sales are "healthy enough" to mitigate the risk that comes along with not being able to return unsold inventory like it can with CDs. Quote Link to post Share on other sites
Sir Stewart Posted May 11, 2009 Share Posted May 11, 2009 Somebody here said it before and it bears repeating: imagine if vinyl ended up saving the record industry. Wild. Quote Link to post Share on other sites
nodep5 Posted May 11, 2009 Share Posted May 11, 2009 I can imagine and I'm smiling Quote Link to post Share on other sites
Central Scrutinizer Posted May 11, 2009 Author Share Posted May 11, 2009 Can you imagine what all the used record store dealers that bailed out a decade ago are thinking? Quote Link to post Share on other sites
remphish1 Posted May 11, 2009 Share Posted May 11, 2009 8 sq ft worth of space? Quote Link to post Share on other sites
Guest Speed Racer Posted May 11, 2009 Share Posted May 11, 2009 8 sq ft worth of space? Vinyl is thin. Think about how much space is devoted to the CDs you would buy at Best Buy; Wilco vinyl probably takes up as much or less space as Wilco CDs. And have you seen how much space they devote to mp3 players? Best Buy does a lot with a little. Quote Link to post Share on other sites
dondoboy Posted May 11, 2009 Share Posted May 11, 2009 I can't tell if this is good or bad. The smaller record stores will probably suffer some. Quote Link to post Share on other sites
remphish1 Posted May 11, 2009 Share Posted May 11, 2009 Most Best Buys I have been to might have a whole aisle dedicated to cd storage binders...they should use that space for vinyl instead...I guess 8 Sq Ft is better than nothing... Quote Link to post Share on other sites
MattZ Posted May 11, 2009 Share Posted May 11, 2009 the barnes and noble near my office in midtown has a small vinyl section. It's really weird. It's all reissued classics on vinyl (ie, nothing new). Pet Sounds, Bitches Brew, Tonight's the Night, etc. Quote Link to post Share on other sites
Analogman Posted May 11, 2009 Share Posted May 11, 2009 I noticed there was a vinyl re-issue of Appetite for Destruction at the Best Buy I was at the other night when I bought the Wilco DVD. Quote Link to post Share on other sites
sureshot Posted May 11, 2009 Share Posted May 11, 2009 Somebody here said it before and it bears repeating: imagine if vinyl ended up saving the record industry. Wild. Dream on. It was and will continue to be an incredibly niche market. Growing, sure, but realize how relative that statement is. There were a little under 2 million vinyl records sold in 2008...a very respectable number for sure, but far from the savior of the recording industry. To put it in perspective, there were over a billion legitimate digital downloads over the same period. Again, I think the "8 square feet" of retail exemplifies exactly how much of an opportunity this will be for a big box retailer (not much, especially considering the diminished profit margin on vinyl). Further, the appeal of vinyl is not necessarily the new release, but instead the used copy of some long lost gem that you can find for $5 digging through crates at your indie shop. The people fueling the vinyl craze never shopped at refrigerator stores for music in the first place, so its perplexing they think they're going to somehow pull in the hipster set now. The fact is most major cities can barely keep the few records stores they do have in business, and while vinyl is now seen as "cool", theres still a whole lot of struggling retailers out there living on the brink. Quote Link to post Share on other sites
Analogman Posted May 11, 2009 Share Posted May 11, 2009 I stopped buying vinyl records when there were no more indoor flea markets to go to in the town where I live. I have bought a few records by way of Ebay, but it is just not the same. Quote Link to post Share on other sites
Guest Speed Racer Posted May 11, 2009 Share Posted May 11, 2009 Further, the appeal of vinyl is not necessarily the new release, but instead the used copy of some long lost gem that you can find for $5 digging through crates at your indie shop. The Which is awesome, until the second track on the B Side skips to the high heavens. I think with re-issues costing as much more only slightly more than those used records, nostalgia-shoppers are likely to pay a few more bucks to get a record they know won't be nicked. The people fueling the vinyl craze never shopped at refrigerator stores for music in the first place, so its perplexing they think they're going to somehow pull in the hipster set now. Best Buy has always been pretty good about getting limited edition CD/DVD or bonus CD sets for some of the more popular new releases (i.e., limited to Best Buy, not stuff like the Wilco CD/DVD release). I don't see why they wouldn't expand this to include limited edition 7" with purchase of new vinyl stuff. Quote Link to post Share on other sites
MattZ Posted May 11, 2009 Share Posted May 11, 2009 Dream on. All true, but you would have said the same thing last week in a thread about vinyl. In other words, before Best Buy announced that they would start carrying vinyl. Quote Link to post Share on other sites
sureshot Posted May 11, 2009 Share Posted May 11, 2009 All true, but you would have said the same thing last week in a thread about vinyl. In other words, before Best Buy announced that they would start carrying vinyl. My point is vinyl is a niche market, and Best Buy is trying to market it as a mass market product, which its not and never will be again. Maybe it will be good for people who live in non-metro areas away from good record shops (although 8 sq feet of retail is hardly a substitute). But besides the fact that I hate BB with a passion and would never step foot in one, I see zero reason why I would get a new vinyl there as opposed to any of the outstanding independent shops I have at my disposal, run by people who care about the product they're selling and are deeply entrenched in the local music scenes themselves. I mean, isnt that the appeal of shopping for the physical product in the first place? Quote Link to post Share on other sites
Sir Stewart Posted May 11, 2009 Share Posted May 11, 2009 My point is vinyl is a niche market, and Best Buy is trying to market it as a mass market product, which its not and never will be again.Or, maybe it will be. Quote Link to post Share on other sites
Gobias Industries Posted May 11, 2009 Share Posted May 11, 2009 I think it's cool, but in any case I can't imagine 8 square feet being a lot of room, regardless of whether or not vinyl is thinner than CDs. Hell, my room is bigger than that. Quote Link to post Share on other sites
Central Scrutinizer Posted May 11, 2009 Author Share Posted May 11, 2009 The Virgin megastore in Orlando has about 36 square feet devoted to vinyl. I'd say 8 square feet isn't that bad in the short term. Best Buy has been selling vinyl online for about a year. Note, too, that BB is the No. 3 music retailer behind iTunes and Wal-Mart. When Wal-Mart makes the move, you're talking critical mass. Most big box retailers are already selling turntables. It's not going to take over the industry, but it's a market segment that retailers will begin to get creative with. Quote Link to post Share on other sites
jff Posted May 11, 2009 Share Posted May 11, 2009 I think it's cool, but in any case I can't imagine 8 square feet being a lot of room, regardless of whether or not vinyl is thinner than CDs. Hell, my room is bigger than that. My bath towel is bigger than that. EDIT: Wait, math error. I was thinking 2 feet x 4 feet. 8 by 8 feet is enough room for thousands of records. I see this as a good thing, although I very, very rarely buy new vinyl. I'm all about the $1 bin. Quote Link to post Share on other sites
MattZ Posted May 11, 2009 Share Posted May 11, 2009 Baby steps, people. Baby steps. Today 8 square feet. Tomorrow the whole fucking industry!! Quote Link to post Share on other sites
sureshot Posted May 11, 2009 Share Posted May 11, 2009 Which is awesome, until the second track on the B Side skips to the high heavens. Well, I think it goes without saying that comes with the territory. If you're looking for a pristine skip/pop/crack/hiss-free recording, then vinyls probably not your thing. I think those who really like the format tend to embrace those imperfections. Also, at least at the shops I frequent, they usually dont even buy vinyl off people unless its at least in Very Good condition, or something thats rare. Almost 60% of my record collection is used, and I dont have anything that I would say is unlistenable. the only record I have that is pretty beat up is an original pressing of the Doors' LA Woman...which actually suits it pretty well. God, I feel like this guy now... Quote Link to post Share on other sites
Sir Stewart Posted May 11, 2009 Share Posted May 11, 2009 the only record I have that is pretty beat up is an original pressing of the Doors' LA Woman...which actually suits it pretty well. I bet The Cars Hiss By My Window sounds damn good. Quote Link to post Share on other sites
Guest Speed Racer Posted May 11, 2009 Share Posted May 11, 2009 Well, I think it goes without saying that comes with the territory. If you're looking for a pristine skip/pop/crack/hiss-free recording, then vinyls probably not your thing. I think those who really like the format tend to embrace those imperfections. Also, at least at the shops I frequent, they usually dont even buy vinyl off people unless its at least in Very Good condition, or something thats rare. Good vinyl is supposed to pop/crack/hiss, yes, and also go, "strange brew/killin' what's inside of you," not, "stra/stra/stra/stra/stra/stra/stra/stra/stra/stra/stra/stra/stra/stra/stra." I don't know anyone that embraces the latter. In my experience, the $5 used bins (the price you quote in your previous post) end up skipping like crazy. VGC vinyl doesn't cost $5, it costs more like $10-$13, which is an awful lot like what new re-issues are going for, which means that Mr. Old Fogey is likely to pick up a few old Cream/Clapton vinyls while he's buying a refridgerator, or video games for his obnoxious son. Best Buy won't get the hipster market, but they'll probably do well with the fogey market and pretty well on the non-hipster youth that enjoy the occassional record (I can see myself picking up a few vinyl there on a whim). Quote Link to post Share on other sites
nodep5 Posted May 11, 2009 Share Posted May 11, 2009 I stopped buying vinyl records when there were no more indoor flea markets to go to in the town where I live. I have bought a few records by way of Ebay, but it is just not the same. buying vinyl on ebay is not good. You get want you want, and sometimes a decent deal, but the experience and excitement is no where the same. I reserve ebay for stuff that I just am having no luck finding anywhere. Coincidently analogman, T Rex Electric Warrior was one that I broke down and got on ebay. I swear after I did that I saw it at least a half dozen times in the following year. Record collecting is like that. You search for years, finally get it, and then you see it all the time. Quote Link to post Share on other sites
nodep5 Posted May 11, 2009 Share Posted May 11, 2009 Also I will go anywhere (even Wal Mart) if they carry new vinyl. I make a special trip to Lawrence Ks. every year to The Love Garden just because they carry a crap load of new vinyl. If you are a Record Store selling only used vinyl and not carrying all the new vinyl and new reissues, I think you are just missing an opportunity. Quote Link to post Share on other sites
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