Retailer`s from Australia largest independent buying group Leading Edge have gathered in Alice Springs with the music industry to discuss the shape of the business in 2010. The conference is Australia`s largest gathering of Independent retailers.
Leading Edge CEO Gavin Ward pointed out the window of opportunity for Independent retailers is based on the "service, knowledge and range" they can offer compared to major chains.While overall sales are down in the the first quarter by about 6%, Gavin acknowledged that there were 140 less stores than 3 years ago and therefore fewer places to buy. The closure of stores is coming more from larger chains and department stores that are also stocking fewer titles. "People will get tired of going to department stores and not getting what they want. They will go to an Indie store instead," he said in his opening statement.
Leading Edge General Manager George Papadopoulos mirrored the sentiment in discussing the video business saying "new releases are driving the DVD business." He pointed out that the DVD business currently does not have the same issues as the music business with downloading. "The file size for downloads is a problem for DVD as the files are compressed and the download does not give DVD or Blu-Ray quality," he said.
George acknowledged the closing of video stores in Australia in the last 18-24 months was more a correction of the industry. "Rapid growth in the 90s peaked at 3,200 stores and that was substancial for the market. It has gone back to one or two stores per suburb which gives people better quality stores," he said.
The Leading Edge conference also includes representatives from the four major labels and indie labels. Last night, Catherine Britt, Bill Chambers and Georgia Fair showcased for the delegates performing songs from their new albums.
The conference will conclude on Wednesday.
