how mainstream record shops deal with their stock

mixed_biscuits

_________________________
Been wondering about stuff like this for a while:

- How and why do shops like Impulse run sales of batches of seemingly random, leftfieldish stuff at £1 to £2 each: stuff like Four Tet. Where do the cds come from - from Impulse itself or are they leftovers from the larger HMVlikes?

- What do Zavvi/HMV etc do with the possibly interesting low-probability music that they fail to sell (eg. stuff that has been ordered and not picked up). There used to be the occasional dirt-cheap sale of stuff like this, but now even the bargain bins have been disappointingly homogenised across their stores.

In short, what paths does stock take through the high street music retail system?
 
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straight

wings cru
the virgin change to zavvi is one of the saddest sights of the record industries downfall, they've changed the outside but its still the same rubbish virgin interior inside, abeit with a name and rubbish 2002 signage that sounds like an asian purveyer of 'fancy goods'
 

Gabba Flamenco Crossover

High Sierra Skullfuck
Virgin probably only order low selling niche stuff in bits and bobs at a time. If they buy in bulk they only have to warehouse it, which costs money.

They woudl do that to the majors too, but they have the clout to make retailers buy in bulk. Indies have to take what they're given.
 

mixed_biscuits

_________________________
the virgin change to zavvi is one of the saddest sights of the record industries downfall, they've changed the outside but its still the same rubbish virgin interior inside, abeit with a name and rubbish 2002 signage that sounds like an asian purveyer of 'fancy goods'

Their staff are allowed to turn up in mufti and they seem to have more 'classics' knocked down to £5 - does this herald a minor Foppification?
 

mms

sometimes
Been wondering about stuff like this for a while:

- How and why do shops like Impulse run sales of batches of seemingly random, leftfieldish stuff at £1 to £2 each: stuff like Four Tet. Where do the cds come from - from Impulse itself or are they leftovers from the larger HMVlikes? Or is it some kind of loss-leading initiative on so.'s behalf?

- What do Zavvi/HMV etc do with the possibly interesting low-probability music that they fail to sell (eg. stuff that has been ordered and not picked up). There used to be the occasional dirt-cheap sale of stuff like this, but now even the bargain bins have been disappointingly homogenised across their stores.

In short, what paths does stock take through the high street music retail system?

some stuff is bought in at knocked down prices as distributors run campaigns on stock from time to time, like those four tet cds - there was a really cheap domino back catalogue campaign last year, but those cds bought then would be non returnable, so any overstocks probably would have had a price reduction from about £3 to £2 just to make space for other stuff.
some stuff would have to be knocked down in order to sell it as has been overordered and it can't be returned.
stuff that doesn't sell is usually returned if it can be.
high street music stores order from distributors much the same as any other store, be these music dvd computer game or magazine distributors.
 
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Leo

Well-known member
what's the typical mark up on cds for big chains versus small ndependent shops? in other areas of retail (clothing, etc.), it can average 50-100%, but i can't imagine it's more than 20% or so for cds. no wonder small shops in big cities can't afford to pay escalating rents.

this blew my mind: a new coffee shop recently opened on bedford ave in williamsburg, brooklyn that's reportedly paying $12,000 a month rent. how many freakin' lattes to you have to sell to cover that!
 

hint

party record with a siren
what's the typical mark up on cds for big chains versus small ndependent shops? in other areas of retail (clothing, etc.), it can average 50-100%, but i can't imagine it's more than 20% or so for cds. no wonder small shops in big cities can't afford to pay escalating rents.

Most shops add 30% -> 40% for CDs and vinyl, plus there's 17.5% VAT to add too. A CD selling for £9.99 in a shop will be sold from a distro to the shop for about £6, with the label maybe seeing £4 of that eventually.

The discounts come from bulk orders - distributors will offer 4 + 1 deals, for example, during the first week of release, to encourage shops to stock more. This is why you often see prices rise after the first week or so - as the shops sell out, they have to restock at full price from the distro.

The big chains have greater buying power here, so they get more free units, which means they can then offer lower prices for longer than the indie shops since they don't sell out of the discounted stock as quickly.
 
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