Originally Posted by TowerGrove
Also fewer and fewer storefronts will have some effect on sales. Many retailers who carried items like media have closed in the past 2 years. Including Borders, Blockbuster, Circuit City some of the Barnes and Nobles, Hollywood Video, Virgin, Saturday Matinee, Suncoast etc (the list goes on and on). This has caused me to impulse buy less and less now.
I think that's a large factor that has often not been discussed much.
The closure of Circuit City in particular in March 2009 made a difference as they were among the leading packaged media retailers. Their liquidation sale in 1Q 2009 affected the 1Q 2009 vs 1Q 2008 comparisons and also made a one time effect in the annual comparisons plus eliminated that sales channel forever in the future.
Although Circuit City closed for reasons that were predominately not related to software sales they changed the marketplace forever when they went belly up in 2009. That eliminated a major channel for brick and mortar packaged media sales that many consumers routinely bought DVD units from for many years.
The other rentailer closures for Hollywood Video/ Movie Gallery Blockbuster locations and Borders etc all have had an effect to as they eliminated locations that consumers did impulse purchases of packaged media as well.
Nice observation that we have not talked about much.