Big box stores pushing other music retailers into the marginsThis article from the US relates a few facts and figures about the growth of big box stores (eg. Best Buy, Wal-Mart), and how they've not only put many of the smaller independent retail stores out of business, but how their impact has also seen the demise of some branches of the larger chain stores (both Tower and Virgin Megastores have closed outlets in the USA, Camelot Music has gone under, and Trans World Entertainment - which owns FYE, Coconuts and Strawberries - has closed 100 stores around the country and moved its core business to DVDs).

One suspects the same thing is bound to happen in NZ. The Warehouse now sells half of all CDs bought in New Zealand, and can make a NZ release go gold just by placing an order for it. CDs are one of their loss-leaders, a popular consumer good that the Warehouse is happy to sell at a loss just to get people in the door (update: I'm told this isn't actually the case - see the comments box). It's easy to see how other stores just can't compete, especially when, like most music store chains, they're treading on similar Top 40 style ground.

The good news is that indie niche stores aren't really feeling the pinch at all. As many of the smaller store owners interviewed for the piece attest, catering for a specialist audience away from the top 40 flocks is the way to stay in business. Having that indepth knowledge of a specific musical area is key to attracting a discerning audience, many of whom will be happy to fork out extra cash for that rare 12" vinyl they've long heard of but never been able to lay their mitts on. Try going to the Warehouse and asking them to get in the latest Squarepusher 12" for you. The look you'll get will probably be even more blank than the usual one.

So, Slowboat Records, Real Groovy, Records Records and the like can probably rest easy for now.
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