Wal-Mart’s CD Scheme Has Record Stores Singing Blues
Ah, Wal-Mart. The biggest retail store in the country has a bad track record of paying low wages, putting local mom-and-pop shops out of business and not overseeing its allegedly sexist employment methods. But whatever your stance on corporate powers, you can’t deny that Wal-Mart brings low prices to the table. To further its mantra, the retail giant has lowered the prices of its CDs. Most stores carry as many as 4,000 titles.
The practice of selling CDs below cost is a common practice in the world of retail stores. Best Buy has used the tactic for ages in order to lure customers who simply enter expecting to buy a CD or two until they see all the merchandise the place has to offer and walk out with a new iPod or a boom box. Similarly, Wal-Mart has suffered losses on selling CDs they purchase from manufacturers at $12 a pop to customers for $10. Now the retail giant is tired of losing money and wants the major record labels to lower their prices so they can also lower theirs without suffering any loss.
Oh, the balls on Wal-Mart! What right do they have to expect that major music labels will lower their CD prices exclusively for one retail chain? There are a bunch of other stores they can take their business to. However, it’s not that simple. Wal-Mart is like the popular kid in high school. If you don’t know him, you won’t get to go to the coolest parties. Likewise, if you (a record label) don’t have a contract with Wal-Mart, you can count on losing business