CDs and DVDs won’t be leaving JB Hi-Fi shelves anytime soon. Whilst the formats don’t occupy as much space as they used to inside JB stores, Richard Murray, CEO of the retail giant, says the company is still committed to providing physical music.
Why, you ask? Because believe it or not, CDs are still making money. JB is certainly transitioning to focus more and more on consumer electronics like mobile phones, cameras, and laptops, but music, movies, and software still delivered $600 million in revenue last year.
As the Sydney Morning Herald reports, sales may have dipped in recent years, but they still deliver the green. “Yes, people are consuming that content digitally… but still, I’m not disappointed that it’s circa 14 per cent of our business,” Murray told Fairfax.
Murray also said that the CD and DVD aisles set JB Hi-Fi apart from other electronics retailers who might otherwise sell the same products. “It is seen by customers and staff as a part of our brand DNA,” Murray told Fairfax.
“So many customers talk about how they love talking to individual music and movie advisors in store, that love talking to [them]: ‘I like this band, what else is similar to it? I like this movie, can you recommend something else?'”
After all, you could get your laptop from Harvey Norman and your phone from the Apple Store, but JB Hi-Fi is not only a one-stop-shop for such items, you can also pick up an album while you’re there. Or even the opposite, as Murray claims those looking to buy music often make other purchases as well.
So physical record sales may be dropping year on year and even digital may be suffering at the hands of streaming, but as long as you’re still going out and buying CDs, JB Hi-Fi will still be stocking them. In the case of Kerser, behind the counter.
