Circuit City announced record sales for December 2006 (read press release). Music sales, on the other hand, continued to lag.

"Comparable store sales of video software increased by low-single digits, and comparable store sales in music software declined by double digits."

Satellite radio products also experienced double-digit declines.

Circuit City's announcement is the latest in a series of announcements that paints a gloomy picture for CD sales at mass merchants and national chains. Best Buy also reported lower music sales in December. Last month, Borders announced its comparable store sales in the music category were down 17.8% for the 13 weeks ending October 28, 2006.

In 2006, mass merchant album sales dropped 4% while retail chain album sales dropped 12%.