Musical Instrument Stores
Description
Companies in this industry sell new musical instruments, sheet music, and related supplies from physical retail locations; some also offer musical instrument repair, rental, and music instruction. Major companies include Guitar Center, Numark, Sam Ash Music, and Schmitt Music (all based in the US), as well as Shimamura Music and Yamano Music (both based in Japan), and Thomann (Germany).
The market is forecast to grow by about $2.1 billion at a 4% compound annual growth rate during the 2024-2029 forecast period, according to Technavio. The major trend in the market is driven by the rising popularity of online stores. The North American market contributes about 40% of the market growth.
The US musical instrument stores industry includes about 3,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $5 billion.
COMPETITIVE LANDSCAPE
Consumer income and changes in musical tastes drive demand for musical instruments. The profitability of individual companies depends on effective merchandising. Large companies have economies of scale in purchasing and marketing. Small companies can compete effectively by specializing in personalized service or high-end instruments. The US industry is concentrated: the 20 largest companies account for about half of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include musical instruments and accessories (about 85%). Other sources of revenue include pianos and organs at about 10%.
Musical instrument stores include full-line stores and specialty stores such as keyboard, school band music, and pro audio stores. Full-line stores offer a complete range of musical instruments and accessories. Keyboard stores specialize in traditional upright, grand, self-playing, and electronic pianos. School music stores sell band instruments to universities, high schools, and amateur players. Pro audio stores specialize in selling sound system equipment.
Full-line musical instrument stores include national chains and independent dealers, as well as big-box retailers with a musical instrument department. National full-line chains operate in stand-alone buildings and strip malls, with stand-alone stores with an average of 10,000 square feet. Chains may also operate midsized stores within indoor shopping malls, and often own specialty stores under a different brand name. Specialty stores typically operate within 2,000 to 4,000 square feet of retail space, either as small stand-alone buildings or within strip malls. Many specialty stores supplement retail sales with an online store or through auction sites like eBay.
Small specialty retailers are often family-owned businesses with a staff as few as two people. Chain stores typically employ 20 to 40, including an hourly commissioned sales staff, a salaried management team, and a warehouse manager.
Inventory assortment varies widely depending on the sales channel, store size, and product mix. Large full-line stores carry between 5,000 and 8,000 stock-keeping units (SKUs) in a physical store, but can offer up to 40,000 SKUs in an online catalog. Smaller specialty stores, particularly keyboard stores, may carry only 250 to 500 SKUs.
Full-line stores operate centralized distribution centers to support retail store operations. Products flow through the distribution facility and are drop-shipped to individual dealers. Large chains rely on automated merchandise replenishment systems to analyze and forecast sales for each product. Corporate buyers are assigned to manage sales for entire product categories such as guitars, accessories, and electronic instruments.
Small dealers juggle multiple ordering systems operated by distributors and manufacturers. Product orders can be placed online through a wholesaler or manufacturer’s website, or via a print catalog.
Imports account for a significant portion of US musical instrument sales. China, by far, is the largest exporter of musical instruments to the US. Other leading sources of instruments sold in the US include Indonesia, Japan, Mexico, Taiwan, and Germany.
The market is forecast to grow by about $2.1 billion at a 4% compound annual growth rate during the 2024-2029 forecast period, according to Technavio. The major trend in the market is driven by the rising popularity of online stores. The North American market contributes about 40% of the market growth.
The US musical instrument stores industry includes about 3,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $5 billion.
COMPETITIVE LANDSCAPE
Consumer income and changes in musical tastes drive demand for musical instruments. The profitability of individual companies depends on effective merchandising. Large companies have economies of scale in purchasing and marketing. Small companies can compete effectively by specializing in personalized service or high-end instruments. The US industry is concentrated: the 20 largest companies account for about half of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include musical instruments and accessories (about 85%). Other sources of revenue include pianos and organs at about 10%.
Musical instrument stores include full-line stores and specialty stores such as keyboard, school band music, and pro audio stores. Full-line stores offer a complete range of musical instruments and accessories. Keyboard stores specialize in traditional upright, grand, self-playing, and electronic pianos. School music stores sell band instruments to universities, high schools, and amateur players. Pro audio stores specialize in selling sound system equipment.
Full-line musical instrument stores include national chains and independent dealers, as well as big-box retailers with a musical instrument department. National full-line chains operate in stand-alone buildings and strip malls, with stand-alone stores with an average of 10,000 square feet. Chains may also operate midsized stores within indoor shopping malls, and often own specialty stores under a different brand name. Specialty stores typically operate within 2,000 to 4,000 square feet of retail space, either as small stand-alone buildings or within strip malls. Many specialty stores supplement retail sales with an online store or through auction sites like eBay.
Small specialty retailers are often family-owned businesses with a staff as few as two people. Chain stores typically employ 20 to 40, including an hourly commissioned sales staff, a salaried management team, and a warehouse manager.
Inventory assortment varies widely depending on the sales channel, store size, and product mix. Large full-line stores carry between 5,000 and 8,000 stock-keeping units (SKUs) in a physical store, but can offer up to 40,000 SKUs in an online catalog. Smaller specialty stores, particularly keyboard stores, may carry only 250 to 500 SKUs.
Full-line stores operate centralized distribution centers to support retail store operations. Products flow through the distribution facility and are drop-shipped to individual dealers. Large chains rely on automated merchandise replenishment systems to analyze and forecast sales for each product. Corporate buyers are assigned to manage sales for entire product categories such as guitars, accessories, and electronic instruments.
Small dealers juggle multiple ordering systems operated by distributors and manufacturers. Product orders can be placed online through a wholesaler or manufacturer’s website, or via a print catalog.
Imports account for a significant portion of US musical instrument sales. China, by far, is the largest exporter of musical instruments to the US. Other leading sources of instruments sold in the US include Indonesia, Japan, Mexico, Taiwan, and Germany.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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