Total album sales are down 14% this year but two areas in particular are struggling more than others. CD sales at mass merchant and chain retailers have fallen sharply in 2007. Through last week, CD sales at big box retailers -- such as Wal-Mart and Target -- are down 17% versus last year while chain sales are down 24%. In unit terms, chains are down about 42 million albums and mass merchants are down over 29 million. A total of 362 million albums have been sold in 2007.

The sale picture was very different at this time last year. Mass merchant CD sales were down only 3% year-over-year while chain sales were down 13% and indies were struggling with a 22% deficit. So in percentage points, both mass merchants and chains are down 14 points year-over-year.

Non-traditional sales -- which include iTunes, Amazon.com and Starbucks -- are up 30% this year. That 30% increase, though, represents only 13.8 million units and is nowhere close to offsetting the huge downturn at mass merchants and chains.

According to sources, there are a few key reasons for the mass merchants' decline. A key issue is the lower number of titles being stocked. For example, Wal-Mart, the nation's leading music retailer, is said to have reduced by about 15% the number of unique titles it carries. After this Christmas season, Wal-Mart is expected to reduce even more the number of titles it stocks. Another reason is that 2007 has not had the kind of mainstream hits that sell well at mass merchants. After its huge 2006 (driven by Carrie Underwood and Rascall Flats), country music has had an especially weak 2007. Country album sales are down 26% so far this year. Since mass merchants represent a huge share of country sales, that's another reason why mass merchants sales are so far down.

National chains' woes are well documented. Tower Records is out of business and Virgin Megastore has a new ownership and continues to lag. Trans World's same stores music sales decreased 19% in Q2 and the company plans to close around 80 stores by the end of 2007.

[music jobs] Brand and Online Marketing Manager at The Ascot Club/Am Only; Brooklyn, NY.