Musical Instrument & Supply Stores NAICS 459140

Sep 25, 2025 - Fender Raises Prices Amid Tariff Pressures

• 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 12 industries reporting growth in August's Services ISM Report on Business. Executives in the Retail Trade industry reported increases in business activity, new orders, prices paid for materials and services, and inventories, along with faster supply deliveries and a decrease in order backlogs in August. Additional industries reporting growth during the period were Information; Wholesale Trade; Arts, Entertainment & Recreation; Mining; Transportation & Warehousing; Educational Services; Professional, Scientific & Technical Services; Utilities; Health Care & Social Assistance; Public Administration; and Real Estate, Rental & Leasing. Four industries reporting contraction during the period were Accommodation & Food Services; Management of Companies & Support Services; Other Services; and Construction. Overall, economic activity in the services sector grew in August for the third consecutive month, with the Services PMI registering 52%.

• Large retailer Guitar Center has launched a new AI shopping assistant on the store floor, according to Retail Tech Innovation Hub. The AI-powered assistant, called Rig Advisor, is available in locations in the US. The mobile-based tool, which is accessed via a QR code, allows customers to find and compare products available in stock at that specific store location. Customers can also search for gear inspired by specific songs and artists. According to Guitar Center Gabe Dalporto, “Rig Advisor is like having a professional gear consultant in the palm of your hand, delivering lightning fast answers as you explore our music stores. It will turn our stores into tech powered music hubs where creativity, curiosity, and inspiration lead the way.”
• Consumer mood indicators in the US declined, signaling growing economic unease. The Consumer Confidence Index fell 1.3 points in August 2025, driven primarily by younger consumers under 35, while confidence among those over 55 improved. Despite the dip, overall confidence remained consistent with recent months. Separately, the University of Michigan’s Consumer Sentiment Index dropped to 55.4 in preliminary September data, down from 58.2 in August and 21% below September 2024 levels. Inflation expectations held steady, though concerns about pricing pressures, particularly from tariffs, persist. These indices reflect consumers’ outlook on personal finances and the broader economy, serving as key predictors of future spending behavior.