Overview

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

The Record Stores market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Industry Threats & Opportunities

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

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    Industry Analysis & Industry Trends

    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 over the past five years across all music industries. While consumer sentiment is expected to continue 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. Additionally, increases in disposable income will lead consumers to spend more on electronics that are compatible with digital music and streaming services...

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    Industry Report - Industry SWOT Analysis Chapter

    Industry participants are adversely affected by consumer shopping trends in favor of big-box, online retailers and an increase in the popularity of online streaming services. Over the 10 years to 2021, the industry's contribution to the overall economy or the industry value added (IVA) is expected to decrease at an annualized rate of 7.1% while GDP grows 2.0% during the same period. Diminishing demand for CDs, reduced consumer spending and increasing pressure on prices has led to a significant decline in the number of businesses and store branches over the five years to 2016. These same pressures may subside a bit with the economy's recovery; however, the underlying issues faced by record stores will continue to exist.

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    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..

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    Look under the hood?

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    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
    Digital Video Discs (DVDs) and video tapes
    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
  • Compact discs, records, tapes & audio books
  • Digital Video Discs (DVDs) and video tapes
  • 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 (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Album Sales (2007-2021)

  • 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, households 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 pre-recorded with music.
  • Return Privilege
  • Record retailers have the right to return for a refund a percentage of the amount of records purchased from the record company or distributor that went unsold.
  • 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).
  • Why buy this report?

    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.

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