Musical Instrument & Supplies Stores in the US Industry Market Research Report from IBISWorld has Been Updated
Los Angeles, California (PRWEB) July 27, 2013 -- As consumer sentiment and per capita disposable income increase with the anticipated economic recovery, the Musical Instrument and Supplies Stores industry will change its tune. “Armed with deeper pockets, consumers are expected to increase their spending on musical instruments, which many had delayed purchasing during the recession,” says IBISWorld industry analyst Natalie Everett. Industry revenue is estimated to have declined at an average annual rate of 4.1% during the five years to 2013. Weak demand conditions following the collapse of the US economy, including poor consumer confidence and reduced disposable income, caused industry revenue to plummet 10.9% in 2010. In 2013, however, as the Musical Instrument and Supplies Stores industry begins to recover from the recession, IBISWorld anticipates industry revenue will grow 8.4% to $9.4 billion.
Heightened external competition has caused Musical Instrument and Supplies Stores industry revenue to decline during the past five years. Mass merchandisers like Walmart and Best Buy have increasingly added musical instruments to their product offerings and are able to negotiate lower prices from manufacturers due to their economies of scale. “Because industry operators reduced their prices to remain competitive, average industry profit declined in the past five years,” says Everett. Such poor industry performance has caused high mergers and acquisitions activity, with some underperforming firms exiting the industry completely. The number of enterprises is estimated to have declined at an average annual rate of 1.1% to 9,403 during the five-year period.
Musical instrument and supplies stores have been subject to a low level of concentration during the past five years. Aside from the largest player, Guitar Center, this industry is highly fragmented due to the large number of independent operators running traditional family-owned retail outlets, which are often referred to as nonemployers (businesses that have no paid employees, are self-employed or in partnerships. Even among stores that have employees, establishments tend to be small. Albeit from a low base, industry concentration levels have increased in the five years to 2013, thanks to the consolidation of players.
Yet, the industry's outlook is bright, with revenue forecast to increase in the five years to 2018. As the economic recovery gains traction, improvements in consumer spending will likely boost revenue. News will not be all good, however, as competition from retailers outside the industry is expected to persist. This trend will continue to pressure musical instrument stores, keeping margins depressed.
For more information, visit IBISWorld’s Musical Instrument & Supplies Stores in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry retail an extensive selection of musical instruments, such as violins and pianos, and associated products, such as microphones and amplifiers. These products are usually sold directly to end consumers. Many industry operators also repair and rent these products and provide music instruction.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, 310-866-5042, [email protected]
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