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
ebookA unique anthology of reporting and analysis of a crucial period of history
Luis Suarez looks towards the crowd during the 2-1 victory over England
Life and Style
Cheesecake frozen yoghurt by Constance and Mathilde Lorenzi
food + drinkThink outside the cool box for this summer’s frozen treats
John Barrowman kisses his male “bride” at a mock Gretna Green during the Commonwealth Games opening ceremony
peopleBarrowman's opening ceremony message to Commonwealth countries where he would be sent to prison for being gay
Sir Bradley Wiggins removes his silver medal after the podium ceremony for the men’s 4,000m team pursuit in Glasgow yesterday
Commonwealth games Disappointment for Sir Bradley in team pursuit final as England are forced to settle for silver
Alistair Brownlee (right) celebrates with his gold medal after winning the men’s triathlon alongside brother Jonny (left), who got silver
England's Jodie Stimpson won the women’s triathlon in the morning
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Trade Desk Specialist (Linux, Windows, FIX, Finance, Networks)

£60000 per annum: Harrington Starr: Trade Desk Specialist (Linux, Windows, FIX...

Associate CXL Consultant

£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

Project Manager - ETRM/CTRM

£70000 - £90000 per annum + Job Satisfaction: Harrington Starr: Project Manage...

C#.NET Developer

£300 - £350 per day: Harrington Starr: C#.NET Developer C#, WPF,BLL,MVVM, SOA...

Day In a Page

Backhanders, bribery and abuses of power have soared in China as economy surges

Bribery and abuses of power soar in China

The bribery is fuelled by the surge in China's economy but the rules of corruption are subtle and unspoken, finds Evan Osnos, as he learns the dark arts from a master
Commonwealth Games 2014: Highland terriers stole the show at the opening ceremony

Highland terriers steal the show at opening ceremony

Gillian Orr explores why a dog loved by film stars and presidents is finally having its day
German art world rocked as artists use renowned fat sculpture to distil schnapps

Brewing the fat from artwork angers widow of sculptor

Part of Joseph Beuys' 1982 sculpture 'Fettecke' used to distil schnapps
BBC's The Secret History of Our Streets reveals a fascinating window into Britain's past

BBC takes viewers back down memory lane

The Secret History of Our Streets, which returns with three films looking at Scottish streets, is the inverse of Benefits Street - delivering warmth instead of cynicism
Joe, film review: Nicolas Cage delivers an astonishing performance in low budget drama

Nicolas Cage shines in low-budget drama Joe

Cage plays an ex-con in David Gordon Green's independent drama, which has been adapted from a novel by Larry Brown
How to make your own gourmet ice lollies, granitas, slushy cocktails and frozen yoghurt

Make your own ice lollies and frozen yoghurt

Think outside the cool box for this summer's tempting frozen treats
Ford Fiesta is UK's most popular car of all-time, with sales topping 4.1 million since 1976

Fiesta is UK's most popular car of all-time

Sales have topped 4.1 million since 1976. To celebrate this milestone, four Independent writers recall their Fiestas with pride
10 best reed diffusers

Heaven scent: 10 best reed diffusers

Keep your rooms smelling summery and fresh with one of these subtle but distinctive home fragrances that’ll last you months
Commonwealth Games 2014: Female boxers set to compete for first time

Female boxers set to compete at Commonwealth Games for first time

There’s no favourites and with no headguards anything could happen
Five things we’ve learned so far about Manchester United under Louis van Gaal

Five things we’ve learned so far about United under Van Gaal

It’s impossible to avoid the impression that the Dutch manager is playing to the gallery a little
Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform