By Corene Sullivan
Despite the fact that compact disc sales are down worldwide, independently owned CD retailers in Ottawa say they are less affected by music on the Internet than are chain stores. In fact, some say they are even profiting from the technology.
“Our sales are good for a new business in a declining market,” says Ian Boyd, part-owner of Compact Music.
Good enough in fact, that after more than ten years at their store on Bank Street and Third Avenue, Boyd and his brother opened a second location on Bank at Slater last fall.
Opening a CD store in a declining market where laws are changing to allow people to legally purchase music on the internet may seem odd, but Boyd believes the Internet has in some ways helped his business.
“We’ve made sales for years because of the Internet,” says Boyd. “Customers come into the store several times a week, looking for music they’ve heard on the Internet.”
Canada is a large CD market, ranking sixth in the world for CD sales, according to the Canadian Recording Industry Association (CRIA), an organization representing Canadian companies that create, manufacture and market music.
A spokesperson for the CRIA says that in Canada, more than $425 million in retail sales have been lost since 1999.
Boyd says one of the main reasons his stores aren’t feeling the impact of these losses as much as chain retailers, is a difference in inventory and store space allocation.
According to Boyd, chain stores have changed their store layouts, dedicating a significant portion to movie DVDs. Carrying a large number of DVDs means that CD inventory is reduced to make room for these movies.
In contrast to chain retailers, Compact Music has increased its CD inventory in recent years and allocates only a small space to DVDs. Boyd says this has led to a significant increase in sales, because it allows him to carry a large selection of CDs in his stores.
Al Plewis, owner of the independent, used-CD store A & H Records, says he hasn’t been very hard hit by the rise of online music.
“I don’t think there’s that big a change. People’s time is valuable,” says Plewis.
Downloading whole CDs off the Internet takes hours, and the quality is not always great, he says. “All in all, I find the Internet hasn’t caused much of a loss.”
Ian Boyd has faith in the future of the in-store retail market. “People are creatures of habit and (they are) social,” he says. He believes that people enjoy buying CDs in stores and appreciate knowledgeable staff who can help them find what they are looking for.
Despite this belief, the Boyd brothers use the Internet to their advantage. They have an Internet site that sells CDs online and distributes them worldwide.