Industry Analysis & Industry Trends
Continued shifts in consumer preferences and competition from large discount and digital music retailers have dampened consumer demand for the Record Stores industry. With increased accessibility to high-speed internet, music streaming and less expensive CD-burning hardware, album sales have declined significantly over the past five years. While consumer sentiment is expected to improve in the next five years, this industry will fail to experience revenue growth. Consumers who are accustomed to digital music are not likely to return to making regular purchases at record stores... purchase to read more
Industry Report - Industry Investment Chapter
Record stores rely primarily on labor to operate. Duties assigned to industry employees include customer service, maintaining store displays and inventory, processing consumer purchases and maintaining computer systems. Labor is also needed for managing and marketing roles to navigate the changing dynamics of the music retail industry. Over the past five years, these roles have undergone consolidation so that now managers often deal with computer systems and client services to cut store costs.
For every $1.00 spent on labor, the industry spends only $0.10 on capital. Unlike capital costs, which can vary in this industry, labor costs are an integral and steady part of operating expenditure. Wages are estimated to represent 15.0% of total industry revenue in 2014... purchase to read more