The recent closure of Sam Ash Music, a century-old leader in the retail music industry, highlights the ongoing struggle faced by brick and mortar guitar stores against the burgeoning online marketplace. According to Brian T. Majeski, editor of Music Trades, while Sam Ash Music announced earlier this month that they would be shuttering their stores and seeking a buyer, the shift towards internet sales has been reshaping the retail landscape significantly, with around 50% of music product sales now occurring online.
Majeski reflects on the closure of Sam Ash Music, noting that, “In late February came the news that Sam Ash Music would be closing 18 of its 45 locations… a month later, the Ash family delivered a bombshell, announcing that they were closing all stores and looking for a buyer to salvage their 100-year-old retail chain.” He adds that generating sufficient revenue to break even in a physical store has become increasingly challenging. “The collapse of a one-time industry leader underscores just how dramatically the internet has reshaped the retail landscape,” Majeski explains.
Further emphasizing the efficiency of online retail, Majeski points out the vast disparity in revenue generation between online stores and their physical counterparts. “Sales-per-employee for the typical online music retailer is over $700,000, versus $220,000 for brick and mortar,” he states. He also highlights how industry leader Sweetwater operates: “Sweetwater generates revenue out of two distribution centres that rival what Guitar Center produces from over 300 stores.”
This transformation is not confined to the U.S. alone. The UK has also witnessed a significant reduction in music retailers over the past decade. Despite this decline, there appears to be a glimmer of hope with Gen Z’s renewed interest in physical media, as reported by the Daily Mail, with vinyl sales aiding the resurgence of companies like HMV.
Majeski concludes on a somber note, reflecting on the broader implications of this shift: “This isn’t a business for the weak of heart,” indicating the tough realities the music retail industry faces in the digital age.
For those interested in exploring the remnants of a bygone era in music retail, Sam Ash is currently holding a closing down sale. More information can be found on their official website.
