Kmart exits DVDs, CDs, Bluray market

kmartThe beleaguered physical disc category has suffered a major blow, with discount department store Kmart confirming that it will stop selling DVDs, CDs and Blu-ray products.

The decision, reported by parenting publication Kidspot earlier this week, has enraged some consumers, who have taken to social media to express frustration over the move.

“Getting rid of CDs and DVDs for kids, rubbish shame on you Kmart you’ve lost a customer,” one shopper tweeted.

“Kmart have got rid of DVDS?? WTF?! Good thing I don’t get my DVDs from there. JB Hi-Fi for the win,” another consumer said.

A Kmart spokesperson said that exiting physical discs would free up space within stores for new products.

“We have made the decision to exit DVDs, CDs and Blu-ray products so as to allow space within the store for our new creative and activity based kids products,” a spokesperson said.

The move is part of Kmart’s plan to expand its range of in house designed products.

Prices have already been cut by up to 50 per cent in-store in a bid to offload remaining physical disc stock, although the items have already been removed from the online store.

Kmart’s decision reflects ongoing changes in the way entertainment media is consumed, as streaming services like Netflix and Youtube continue to pressure the sales of physical discs.

Research conducted by the Australian Home Entertainment Distributors Association last year found that the physical home entertainment market is still worth around $805 million annually.

But physical disc sales remain in decline, with DVD sales dropping 11 per cent last year.

Meanwhile, Roy Morgan research has found that more than five million Australians now have access to Netflix.

Other retailers such as JB Hi-Fi, Big W, Target and Woolworths continue to sell DVDs, CDs and Blu-ray products.

JB Hi-Fi has suffered declining sales in the category for some time, but group CEO Richard Murray has maintained that JB will look to be the “last man standing” in physical software.

While Kmart’s decision drew derision from many customers on social media, others questioned what all the fuss was about.

“Kmart stops selling DVDs, the 12 people that still buy them are devastated,” one consumer tweeted.

“Kmart to stop selling CDs, DVDs and Blu-rays? Good. Streaming/the digital space is the future, not physical/analog media,” another said.

Some customers have expressed concern, however, that Kmart exiting the category will eliminate a cheap entertainment option for families who can’t afford high-data internet plans or streaming subscription services.

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1 comment

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    Andrew posted on June 30, 2018

    At what point in the process of culling departments from a store's range do we stop referring to them as a Discount DEPARTMENT Store? reply

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