Number Two U.S. Music Retailer is iTunes

Apple’s iTunes digital media store has beat out Best Buy and Target to become the second largest music retailer in the United States. Wal-Mart is still number one according to data released today from the tracking firm NPD Group.

Sales made in 2007 show that legal music downloads account for 10% of all music sales in United States. But an increase of download sales hasn’t been enough to offset a decline in physical CD sales, NPD said. Digital sales rose 6% but actual spending across the industry declined by 10% because of poor CD sales.

Around one million consumers stopped buying CDs in 2007, according to NPD.

Apple’s iTunes store has over 50 million customers and has sold more than 4 billion songs since its inception.