Musical Instrument & Supply Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,400 musical instrument and supply retailers in the US sell musical instruments, sheet music, and related products and services. Firms may provide rental, lease, or repair services for musical instruments. Some firms provide music instruction or lessons. Companies may specialize in a particular product category, such as pianos or guitars.
Competition from Alternative Sources
Musical instrument and supply retailers compete with a variety of alternative sources, including mass merchandisers, warehouse clubs, online-only retailers, and direct-to-consumer channels.
Unpredictable Trends and Fads
While not as unpredictable as the fashion industry, the musical instrument and supply market has its share of trends and fads.
Industry size & Structure
The average musical instrument and supply store operates out of a single location, employs 14 workers, and generates $1-2 million annually.
- The musical instrument and supply store industry consists of about 2,400 firms that employ about 34,000 workers and generate $4.5 billion annually.
- The musical instrument and supply store industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 55% of industry revenue. The top four firms account for 41% of industry revenue.
- Large companies include Guitar Center and Schmitt Music Company. Some large domestic firms will ship merchandise to foreign countries.
Industry Forecast
Musical Instrument & Supply Stores Industry Growth
Recent Developments
Jan 27, 2025 - Sales Fall, Employment Flat
- Sales for musical instruments, sporting goods, hobby, and book stores fell 0.8% in November 2024 compared to a year ago and were up 18.7% from the previous month, according to data from the US Census Bureau. Employment by musical instrument and supplies retailers was mostly flat in November 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees at sporting goods, hobby, musical instrument, book, and miscellaneous retailers were $21.33 per hour in November 2024, an increase of 5.7% year over year. In December 2024, economic activity in the services sector expanded for the sixth consecutive month, according to the Services ISM Report on Business. The Services PMI registered 54.1% in December, up 2 percentage points from November. Nine of the 18 services industries reported growth in December, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries.
- Musical instrument and supplies retailers will have to monitor minimum wage changes in 2025, as 21 states and 50 local jurisdictions increased their minimum wages, according to Chain Store Age. States with the highest minimum wage in the US are Washington ($16.66 per hour), California ($16.50), and New York ($16.50). Nearly 30 cities in California and seven towns in Washington will raise minimum wages in 2025, with Tukwila, Washington, offering the highest minimum hourly wage in the US at $21.10. According to the Economic Policy Institute, the minimum wage change will affect more than $9 million workers and raise pay by a combined $5.7 billion. Unchanged since 2009, the federal minimum wage is $7.25 an hour, and some 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
- Shoppers continued to flex their omnichannel shopping muscles in the 2024 holiday shopping season, with a 7.5% increase year over year in Buy Online, Pick Up in Store (BOPIS) and Reserve Online, Pick Up in Store (ROPIS) transactions, according to Chain Store Age. The report from Locally found that nearly 50% of online shoppers abandoned their carts when local pickup wasn’t an option. Over 90% of leading retailers are expected to adopt ominichannel strategies. According to Locally CEO Mike Massey, "The data shows a clear and sustained shift toward local retail as a preferred choice. Consumers increasingly demanded the flexibility to browse and buy on their terms, and local retailers were quick to respond with omnichannel strategies that bridged the gap between digital and physical commerce.”
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