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Record Stores in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Record Stores Market Research Report | NAICS 45122 | Jan 2017

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

IBISWorld’s Record Stores market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
Annual Growth
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
  • ... purchase to read more

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... ... purchase to read more

Industry Report - Industry Locations Chapter

As with most retail industries, the location of stores falls broadly in line with population trends in each US region. The Record Stores industry is largely concentrated in the Southeast and Mid-Atlantic regions, which account for 21.2% and 20.0% of total establishments, respectively. The US population of each region is 25.4% and 15.5%, respectively. The Southeast's share of the industry has been relatively low for its population size due to the region's older population. The number of establishments in the Southeast will remain relatively stable, though, since older populations are slower to adopt new ways of consuming music.

The percent of establishments located in the West and the Mid-Atlantic regions are higher than their respective populations. Thi.. ... 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... purchase to read more


    Industry ProductsRelated Reports

    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 booksDigital Video Discs (DVDs) and video tapesToys, 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 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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