Facing the music: Online sales and shifting trends continue to siphon industry demand

Sustained 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 across all music industries over the five years to 2017. While consumer sentiment is expected to continue to improve over the five years to 2022, this industry will fail to experience revenue growth. Consumers accustomed to digital music are not likely to return to record stores. Additionally, increases in disposable income will lead consumers to spend more on electronics that are compatible with digital music and streaming services, such as mobile devices and home systems...purchase to read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
-11.1%
Forecast Growth 17-22
x.x%lock
Profit
x.x%lock
Employment
9,674
Businesses
2,117
Market Share of Companies

Industry Threats & Opportunities

  • Big-box stores and internet music continue to steal customer traffic from record stores
  • Streaming capabilities have enabled people to sample music without going to a record store
  • Growth in disposable income will lead to improvement in consumer sentiment

    • shopping_cartPURCHASE OPTIONS Whats in this report faqs Download Sample
    IBISWorld client - ADP Watch Testimonial
    ... DigiCert Seal

    Industry Report - Starting a New Business Chapter

    Actual start-up costs for record stores are low because they require relatively little initial capital outside of renting or buying a location, purchasing goods, and if desired, security and sound systems. Though these costs appear many, they are low enough to permit nonemployers to open shops with minimal difficulty. The most prohibitive element of starting a record store is the low markup that stores charge to compete against online and big-box retailers. Competition has become the main and perhaps the only barrier to entry into this industry. Just as most retailers face increasing competition from online sales, the Record Stores industry faces the added threat of their goods being offered for free online. Due...purchase to read more.

    Additional Insights for the Record Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Record Stores Industry are

  • Attractive product presentation
  • Experienced workforce
  • Ability to control stock on hand

    • IBISWorld analysts also discuss how external factors such as Album sales and Percentage of services conducted online in the Record Stores industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    Industry Products

    What is the Record Stores Industry?

    Record stores primarily retail prerecorded audio and videotapes, compact discs (CDs), digital video discs (DVDs) and phonograph records. Online sales are excluded from this industry.

    Industry Products
  • Compact discs, records, tapes & audio books
  • Video media
  • Toys, hobby goods & games
    • Industry Activities
  • Retailing prerecorded music
  • Retailing prerecorded videos
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Album sales
  • Percentage of services conducted online
  • Per capita disposable income
  • Consumer Confidence Index

    • Current Performance
  • Switching to digital
  • Operators find small reprieve in specialty items
  • Operators compete with major retailers
  • Chart: Revenue Growth

    • Industry Outlook
  • Music industries go digital
  • Downward spiral slows
  • Table: Record Stores Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Record Stores Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Consumers

    • Key Selling Industries
  • Independent Label Music Production
  • Major Label Music Production
  • Music Publishing
  • TV & Appliance Wholesaling

    • Products & Services
  • Video media
  • Compact discs, records, tapes & audio books
  • Other
  • Toys, hobby goods & games
  • Chart: Record Stores Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Consumers aged 45 and over
  • Consumers aged 24 and under
  • Consumers aged 35 to 44
  • Consumers aged 25 to 34
  • Chart: Major Market Segmentation for the Record Stores Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchasing costs
  • Wages
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Record Stores

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Record Stores Industry

    • Industry Globalization

    Major Companies

    Trans World Entertainment Corporation,
  • Table: Trans World Entertainment Corporation - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Record Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Record Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Album Sales (2008-2022)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios

    Jargon & Glossary

    Big-Box Store
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, household goods and other consumer products.
    • Digital Music
  • Music in a digital format that can be easily shared through the internet.
    • Physical Music Media
  • CDs or other physical media prerecorded with music.
    • Return Privilege
  • Record retailers’ right to seek a refund for a percentage of unsold records purchased from a record company or distributor.
    • Streaming Media
  • Multimedia that is constantly received by and presented to an end-user while being delivered by a provider. Common forms include internet television (e.g. Netflix) or online music (e.g. Spotify).
    • What Our Customers Say
    Why buy this report?

    The Record Stores industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Record Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Record Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Record Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Join IBISWorld today

    Become a Member shopping_cartPURCHASE OPTIONS

    Contact Us

    Want to speak to a representative? Call us.

    phone 1-800-330-3772    OR     Inquire Here
    clear