Supermarkets sweep up the music charts

The supermarkets have grabbed more than 10 per cent of the UK's music and video market and could double that figure within a few years. The warning to rival retailers comes in a new survey from retail consultancy Verdict Research which shows that supermarkets such as Tesco, Asda and Sainsbury's have increased their share of the market from 3 per cent in 1991 to 11 per cent last year.

Verdict says the supermarkets have taken sales from multiple retailers such as Woolworths, WH Smith and John Menzies as the grocers continue to target fast-moving chart titles at competitive prices.

Specialist megastores such as Virgin-Our Price and HMV have not suffered, as they offer wide ranges and a "destination" appeal, particularly to fashion-conscious teenagers.

Verdict's Clive Vaughan says there is even more scope for these operators to add extra dimensions to their stores: "They could open Sega centres or cyber-cafes, for example," he says.

Verdict's report shows that the growth of the UK music and video market slowed to 4 per cent last year, half the rate of 1995. The market was worth pounds 2.85bn, with growth held back by the greater availability of budget CDs and cassettes.

Pricing remains a key factor in retail success and the report shows that consumer fears over high prices are misplaced. It says that if the price of a CD had risen in line with inflation an album priced at pounds 11.99 in 1983 would now be pounds 21.55, instead of the typical price of pounds 14.49 today.

Music retailers will have to make more attempt to target the "baby boomer" market if it is to improve sales, the report says. It says this growing section of lapsed music buyers could be tempted back into music buying if retailers opened large out-of-town stores.

Another potential threat to the market is the Internet and digital television, which could make it possible to download music direct on to a disc or a hard drive. Verdict says record labels such as EMI and Sony could choose to sell CDs direct to the public, cutting out the retailer altogether, or offer the chance of downloading music through cyberspace.

"In general we are sceptical about the prospects of online retailing but this is one area where it could make huge inroads," says Mr Vaughan.

Music and video

Market share 1996 %

Virgin Our Price 18.4

Woolworths 16.0

HMV 14.0

WH Smith 7.4

Brittania 6.5

Asda 4.0

Tesco 2.2

John Menzies 2.1

Other 29.4

Source: Verdict

Suggested Topics
Life and Style
The new Windows 10 Start Menu
tech
News
More than 90 years of car history are coming to an end with the abolition of the paper car-tax disc
newsThis and other facts you never knew about the paper circle - completely obsolete today
Arts and Entertainment
There has been a boom in ticket sales for female comics, according to an industry survey
comedyFirst national survey reveals Britain’s comedic tastes
Arts and Entertainment
Ed Sheeran performs at his Amazon Front Row event on Tuesday 30 September
musicHe spotted PM at private gig
PROMOTED VIDEO
Arts and Entertainment
Mystery man: Ben Affleck and Rosamund Pike in '‘Gone Girl'
films... by the director David Fincher
Arts and Entertainment
Hilary North's 'How My Life Has Changed', 2001
books(and not a Buzzfeed article in sight)
News
Kim Jong Un gives field guidance during his inspection of the Korean People's Army (KPA) Naval Unit 167
newsSouth Korean reports suggest rumours of a coup were unfounded
News
ebooksAn unforgettable anthology of contemporary reportage
News
people'I’d rather have Fred and Rose West quote my characters on childcare'
Life and Style
stoptober... when the patch, gum and cold turkey had all faied
Travel
Bruce Chatwin's novel 'On the Black Hill' was set at The Vision Farm
travelOne of the finest one-day walks you could hope for - in Britain
Arts and Entertainment
Gay and OK: a scene from 'Pride'
filmsUS film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
News
people
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Trust Accountant - Kent

NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...

Graduate Recruitment Consultant - 2013/14 Grads - No Exp Needed

£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...

Law Costs

Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...

Day In a Page

Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?
Why do we like making lists?

Notes to self: Why do we like making lists?

Well it was good enough for Ancient Egyptians and Picasso...
Hong Kong protests: A good time to open a new restaurant?

A good time to open a new restaurant in Hong Kong?

As pro-democracy demonstrators hold firm, chef Rowley Leigh, who's in the city to open a new restaurant, says you couldn't hope to meet a nicer bunch
Paris Fashion Week: Karl Lagerfeld leads a feminist riot on 'Boulevard Chanel'

Paris Fashion Week

Lagerfeld leads a feminist riot on 'Boulevard Chanel'
Bruce Chatwin's Wales: One of the finest one-day walks in Britain

Simon Calder discovers Bruce Chatwin's Wales

One of the finest one-day walks you could hope for - in Britain
10 best children's nightwear

10 best children's nightwear

Make sure the kids stay cosy on cooler autumn nights in this selection of pjs, onesies and nighties
Manchester City vs Roma: Five things we learnt from City’s draw at the Etihad

Manchester City vs Roma

Five things we learnt from City’s Champions League draw at the Etihad
Martin Hardy: Mike Ashley must act now and end the Alan Pardew reign

Trouble on the Tyne

Ashley must act now and end Pardew's reign at Newcastle, says Martin Hardy
Isis is an hour from Baghdad, the Iraq army has little chance against it, and air strikes won't help

Isis an hour away from Baghdad -

and with no sign of Iraq army being able to make a successful counter-attack
Turner Prize 2014 is frustratingly timid

Turner Prize 2014 is frustratingly timid

The exhibition nods to rich and potentially brilliant ideas, but steps back
Last chance to see: Half the world’s animals have disappeared over the last 40 years

Last chance to see...

The Earth’s animal wildlife population has halved in 40 years
So here's why teenagers are always grumpy - and it's not what you think

Truth behind teens' grumpiness

Early school hours mess with their biological clocks
Why can no one stop hackers putting celebrities' private photos online?

Hacked photos: the third wave

Why can no one stop hackers putting celebrities' private photos online?