National retailer Circuit City reported a horrible Q2 yesterday. Net sales dropped 9.6% and comp store sales dropped 13.3%. The net loss was $239 million on net sales of $2.39 billion. The press release's only mention of music sales was in a sentence that read, "comparable store sales of video software and music software declined by double digits." Even comp store video games dropped "by a low-single-digit percentage." Store traffic declined by low double digits.

During the conference call, acting president and CEO James Marcum blamed the "entry of mass retailers into the CD market," among many other shifts, for the company's challenges in recent years.

According to NPD, as of January 2008 Circuit City was the tied (along with Barnes & Noble) for the country's eighth largest music retailer with a 2% share of the market.