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
Jul 19, 2024 - Industry Employment Increases
- Employment by musical instrument and supplies retailers increased slightly during the first five months of 2024, according to the US Bureau of Labor Statistics (BLS). Wages for nonsupervisory employees at sporting goods, hobby, musical instrument, book, and miscellaneous retailers were fairly stable in the first five months of the year on a month-to-month comparison. Average wages for the industry were $20.63 per hour in May 2024, an increase of nearly 5% year over year. Consumer spending levels were up 0.2% in May 2024, from the previous month, according to the Bureau of Economic Analysis.
- The assets of century-old musical instrument retailer Sam Ash Music were acquired by Mexican retailer Gohner Music for $15.2 million in June 2024, according to a report in Retail Dive. Gohner 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 will close by July 21, 2024.
- A new UBS report in Retail Dive forecasts that 45,000 retail stores may close in upcoming years as online sales gain share. Online retail penetration is expected to rise to 26% from 21%, with retail sales growth of 4% by 2028, as the industry focuses more on fulfillment and distribution centers. If the closures occur, USB said the total number of stores in the US will fall from 958,533 to 913,500. Other factors driving store closures include a tighter lending environment, higher operational costs, and consumers spending more on services than goods. The report stated that sporting goods, clothing, consumer electronics, home furnishings, hobby, book, and music stores have closed the most locations since the first quarter of 2019. Still, retailers can incorporate existing stores as an important piece of their omnichannel capabilities. Per the report, “Our analysis assumes that stores remain an important part of the overall retail ecosystem for retailers and consumers. In the simplest terms, stores serve as hubs of fulfillment and support distribution logistics. This is increasingly more important as consumers are becoming more demanding for convenience or immediate deliveries.”
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
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