Tue Aug 22, 2006 9:58 am

I was wondering if this meant goodbye to the famous Tower Records in Piccadilly, but it turns out they sold it to Richard Branson last year. I'm really with it.

Tue Aug 22, 2006 10:54 am

They need relevancy to remain. They have none.

They've been overcharging people for years. I won't shed a tear if they go away completely.

Tue Aug 22, 2006 2:22 pm

	The article wrote:
	Tower specifically cited legal music download services as a major contributing factor to its financial troubles. The company noted in its court filing that album sales for 2005 dropped 7.8 percent while sales from the iTunes Music Store and other online services rose 200 percent.

Yet another misuse of statistics, comparing percentages based on different baseline numbers. It's like saying that the number of murders in a year in East Podunk grew by 100% when it went from 1 to 2, whereas the murders in Big City grew by only 20%, going from 1000 to 1200.

Wed Aug 23, 2006 12:24 am

	geoduck wrote:
	Physical media is passe. I have many CDs that I've never played more than once and frankly I need the shelf space more than I need the disk. So do retailers. I think you'll begin to see the Targets, Wallmarts, etc. starting to cut back on shelf space dedicated to CDs and DVDs as on-line retailers continue to gain market share. Tower and Musicland/SamGoody are only the beginning.

The discount retailers shifted the economic risk of record sales back to the industry long ago. I see fewer titles available at the stores with top sellers taking up much of the remaining room.

Apple has shifted the selling model back to singles. That shift has made specialty retailers dependent on full CD sales a losing business.

Wed Aug 23, 2006 3:01 pm

	DawnTreader wrote:
	Records stores were dependent on record company ad and promotion dollars to remain viable. As distribution shifts to online avenues so will the ad and promotion dollars shift as well. Without industry support the rent is way too high and the switch back to singles sales has made the business model for bricks and mortar record stores selling CDs unviable.

Good point. On the other hand, I see several locally-owned CD stores doing a bang-up business. Two are located within 2 blocks of a major university. One is 'way over on the other side of town, but does just as well. They benefit from being locally-owned and -managed, so they can tailor their marketing to the local conditions. Here's some of the things they do:

- Feature local artists that you can't get online or in chain stores.

- Host performances by local artists almost every week (on a weekday afternoon, so as not to interfere with the bands' paying gigs).

- Have good selections of used CDs and DVDs (none carry new DVDs).

- Run frequent promotions, like 20% off everything in the store. One has a discount card--buy 12 CDs (including used) or DVD and get one free, up to $17.99.

- Have personnel who really KNOW music. I can't stress how important that can be. One salesperson said that she was quizzed by the owner and the manager before they would hire her. Of course, most of the staff are young, but one who couldn't be older than early 20s was able to help another ancient hipster find a Louis Prima CD. (If you don't know who Louis Prima was, well, he was married to Keely Smith. <GG>)

- Keep good people. I've noticed that the staff at the store I usually go to is quite stable, much more than most small retail businesses.

- Have well-filled bargin bins at no more than $10/CD. The store I go to also has a section of "junk" (poor-selling) CDs for $1.49-1.99. Lots of kids buy these--they might get one or two songs they like.

- Avoid glitz and glamour in the decor. These places are "minimalist" in the extreme, but they're always clean, neat, and well-lit. (The last is very helpful for us old folks.)

- Include multiple listening stations and comfortable chairs.

- Have a computer (an eMac!) connected to a good searchable database that can also print out an order.

- Give away posters they've taken down.

- Carry music for everyone--and I mean EVERYONE. If I want moldy oldies, I know where to get them. Boxed sets, full operas, folk, bluegrass, world music (especially popular here), rap, techno, reggae, ska, jazz, big bands, etc. It's not unusual to see old farts like me (nearly 60--children of the '60s) lined up with teens. I might have a couple of used DVDs and a "Billboard Hits of 1962" CD, while one teen has the latest <gag> slut-rocker CD, a guy with spiked hair has one by an obscure techno band, a 40-something is buying the latest Garth Brooks album, and an aging hippy has an album by a local folk/world group.

So, it is possible to do well in the retail music business, but the owner/management has to be smart, adapt, and serve their own particular market. If--no, WHEN--Apple comes out with an iTMS kiosk, I expect that the store I go to will step in line to get one.