Musical Instrument & Supply Stores NAICS 459140

Nov 21, 2025 - Music, Hobby Store Sales Up in October

• Music stores posted modest gains in October 2025, reflecting steady consumer demand heading into the holiday season, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions. Sporting goods, hobby, music and book stores rose 0.09% month over month (seasonally adjusted) and 7.1% year over year (unadjusted). This performance outpaced overall core retail sales, which climbed 0.6% month over month and 4.8% year over year. The broader retail sector showed resilience, supported by wage growth outpacing inflation, low unemployment, and strong stock market valuations, according to NRF President and CEO Matthew Shay. Total retail sales excluding autos and gas stations increased 5% year over year, with categories such as digital products (22.3% year over year) and clothing (7.8% year over year) leading growth. NRF forecasts holiday sales to rise 3.7% to 4.2% over 2024, surpassing $1 trillion, positioning music retailers to capture seasonal demand. The data is based on Affinity Solutions’ anonymized card transactions.
• Softening consumer sentiment and confidence in November and October 2025 reflects a growing weakness in discretionary spending, posing challenges for US musical instrument and supplies stores. The University of Michigan’s Index of Consumer Sentiment dropped 6.2% month-over-month in November's preliminary results to 50.3, a 29.9% year-over-year decline. The Current Economic Conditions Index fell to 52.3, and the Expectations Index to 49, down 36.3% annually. Year-ahead inflation expectations rose to 4.7%, while long-run expectations declined to 3.6%, with increased uncertainty across both horizons. Meanwhile, the Conference Board’s Consumer Confidence Index edged down to 94.6 from 95.6 in October, as improved current conditions (Present Situation Index up to 129.3) were offset by weaker short-term expectations (Expectations Index down to 71.5). Inflation expectations rose to 5.9%, and over half of consumers anticipated higher interest rates. Holiday spending is projected to fall, with promotions driving purchasing decisions.

• According to a Guitar World report, Fender has raised prices by 5% to offset rising costs from tariffs, particularly on Chinese imports, which comprise 40% of its purchases. Despite a recent credit downgrade by Moody’s, S&P Global reports that Fender’s pricing strategy has been more effective than competitors who paused imports or avoided price hikes. However, the company faces a negative outlook due to weak consumer spending, cautious dealer inventory practices, and growing competition from the secondhand market. Broader industry data shows U.S. musical instrument exports fell 8.4% from January 2025 to July 2025, driven by trade policy uncertainty and reduced global demand. The developments highlight the vulnerability of musical instrument supply chains to geopolitical shifts and the importance of adaptive pricing strategies. Retailers must navigate cost pressures while maintaining consumer demand, especially for discretionary items like guitars, amid economic volatility and shifting global trade dynamics.
• The Retail Trade Industry is one of 11 industries reporting growth in October's Services ISM Report on Business. Executives in the Retail Trade industry reported increases in business activity, new orders, employment, prices paid for materials and services, and order backlogs, along with decreases in new export orders, imports, and inventories in October. Additional industries reporting growth during the period were Accommodation & Food Services; Wholesale Trade; Real Estate, Rental & Leasing; Health Care & Social Assistance; Utilities; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Information; Professional, Scientific & Technical Services; and Educational Services. Six industries reported contraction during the period, including Arts, Entertainment & Recreation; Management of Companies & Support Services; Finance & Insurance; Public Administration; Construction; and Other Services. Overall, economic activity in the services sector expanded in October, with the Services PMI registering 52.4.