The boom days of the music & video market are over and will not return.
In recent years retailers have benefited from a surge in demand that followed the launch of DVD.
But now that the novelty of DVD has worn off sales growth is in sharp retreat, and market growth in 2004 was the slowest since 1999.
As the market slows, competition is certain to intensify - and only retailers that lead on price will make long term gains.
Grocers and online retailers are in pole position having raised their sales from £1 in every £9 spent on music & video to £1 in every £3 over the last five years and they will pile pressure on high street music & video retailers.