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
Nov 15, 2024 - Retail Sector Growth, Industry Wages Up
- Economic activity in the services sector including the retail sector expanded in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September, marking the fourth consecutive month of expansion. Of the 14 of the 18 services industries reporting growth in October, Retail Trade reported the fastest growth during the period. Employment by musical instrument and supplies retailers declined 1.5% in September 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 $20.93 per hour in September 2024, an increase of 4.3% year over year.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- Consumers plan to lean more on Buy Now, Pay Later (BNPL) services during the upcoming holiday season, with nearly a third of respondents considering using the option for their shopping, according to a new holiday survey by Morning Consult and Afterpay. About 23% of respondents said BNPL helps them stretch their holiday budget, and nearly 60% said they plan to use the BNPL even more in the upcoming holiday season. Demographically, millennial parents (42%) and Gen Z (41%) shoppers are more likely to consider BNPL for their holiday shopping. According to Afterpay, "As holiday shopping trends continue to evolve, these findings offer valuable insights into consumer behavior, spending patterns, and the growing reliance on flexible payment options like BNPL. Retailers and brands that adapt to these trends are likely to resonate with today's early-shopping consumers." The survey also revealed that nearly half of shoppers plan to buy from brands with free shipping to reduce the burden of shipping costs. Consumers planning to shop online say they are most likely to make purchases on a store/brand website (69%), apps (60%), ecommerce platforms (47%), and social media (18%) during this holiday season.
- The assets of century-old musical instrument retailer Sam Ash Music were acquired by Mexican music company Gonher Music for $15.2 million in June 2024, according to a report in Retail Dive. Gonher, a distributor of musical instruments and professional sound equipment, purchased “substantially all” of Sam Ash’s assets including Sam Ash’s merchandise, excluding its store closing sale assets, as well as its intellectual property, internet domain names, trademarks, social media accounts, and customer data among other items, per Retail Dive. Sam Ash filed for Chapter 11 bankruptcy in May 2024, citing an over-reliance on in-store retail traffic, too many locations, and the impact of the pandemic on store visits as contributing factors to financial troubles. All of Sam Ash’s stores were slated to close by July 21, 2024.
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