Some prominent indie labels, including Merge Records have shared their thoughts on a recent promotion by Best Buy which aims to sell independent releases at, or below wholesale cost. The promotion has led some to contend that Best Buy is making a strong play to eat into independent record store's market share by undercutting them so dramatically.

One independent distributor has been highly critical of the campaign, arguing that:

[In the 90s'] the combination of poor buying in huge quantities and their lack of ability to sell through eventually lead to so many returns that Best Buy stopped carrying indie music almost entirely.

In the wake of this prolonged disaster lay cities all over the country without record stores, labels either driven to bankruptcy or crippled for years by 50+% returns on titles for which bands were already paid and saddled with enormous pressing plant bills.

Merge, best known for releases from Arcade Fire, Spoon, Dinosaur Jr. and The Buzzcocks responded:

Merge's job is to get our artists' records in as many stores as possible and make them available to as many people as possible who want to buy them. […] I think it's also obvious that Merge is a supporter of independent retail & distribution, we spend money with them advertising & promoting our records as well.

[However] this means chains as well as the independents. Why punish some kid who lives in Yakima where the only place he can find the Arcade Fire cd is at a Target? Do I appreciate Target giving huge sums of money to the GOP? No. Do i prefer to shop at a small local store? Yes. Not everyone has the option, or the politics neccessarily, to do what Patrick at Carrot Top deems "the right thing."

As for this case in particular, Best Buy purchases the Arcade Fire cd from the distributor ADA at the SAME price any other retailer does. Labels and retail are not even legally allowed to discuss pricing, so Best Buy pricing those cds at $7.99 was completely their choice.

$7.99 is a ridiculous price that no independent retailer can match, and I think it DOES devalue cds to a certain extent but I do not agree that best buy putting an Arcade Fire cd on sale for a week is bringing down the indie infrastructure.

Tensions have risen between big box retailers and independent retailers over the years, and some artists have opted to do independent only releases in an effort to show support with the smaller stores.