The record shop sector in the UK has been in decline in recent years, with a number of high-profile stores going out of business. The rise of digital music has been a major factor in this trend, as consumers have increasingly turned to online platforms such as iTunes and Spotify for their music needs. However, there are signs that the tide may be turning for the record shop sector.
In recent years, there has been a resurgence in vinyl sales, with many consumers valuing the format for its superior sound quality. Furthermore, there has been a growing appetite for independent and niche stores that offer a more personalised shopping experience. As a result, the record shop sector is beginning to show signs of recovery, with a number of new stores opening up across the country.
This article will walk you through the current trends affecting record shops in the UK. If you own a record store, you need to know this information.
What has been happening in the music retailing sector
Over the past two decades or so, the music retailing industry in the UK has seen many changes, including the following:
- The introduction of non-specialist retailers, namely supermarket chains, to the market, making it more crowded than ever before
- The massive success of eBay and Amazon, among other online giants, has fuelled e-commerce’s growth
- Streaming services like Spotify, YouTube, and Apple Music have emerged along with the rise of music downloading, first illegally via file sharing networks, then more legitimately through legitimate paid-for services like iTunes.
- Music buying habits are greatly influenced by television shows like X Factor and The Voice
The growth of non-specialist retailers and ecommerce giants along with the rise of digital music have led to severe competition between independent record shops and there has been a dramatic decline in the number of independent outlets. Music retailers were forced to change tactics as a result of these seismic changes. In addition to selling recorded music, some music stores offer customers an ‘experience’ including café sales, books, and live performances.
Many independent businesses have benefited from selling online through their own websites and online marketplaces such as eBay and Amazon.
According to British Phonographic Industry figures, there were just around 300 independent record shops in 2014, a long-term decline. As a result of the steps record stores have taken to meet the various challenges, the number of independents has increased from 2015 to 2017.
Increasing vinyl sales in recent years has also been a major benefit to the independent sector in recent years. Almost half of all vinyl albums are sold by independents, and Record Store Day is now a very important sales event. A total of 200 independent record shops participate in Record Store Day, which was founded in the late 2000s.
In addition to receiving significant media attention from Record Store Day, artists and labels release a lot of exclusive vinyl releases for Record Store Day. By 2017, vinyl sales had increased by nearly 800%. These sales increased 26.8% over 2016 which is encouraging for the sector.
Keep up to date with the music retailing sector
Maintaining a close eye on your industry’s developments is easy with the help of a trade association. British Phonographic Industry (BPI) Ltd represents the music industry. There is a wealth of useful information about sector trends and legal issues within the BPI’s annual statistical handbook, and there is more guidance on the BPI website.
Record shops in the UK are represented by the Entertainment Retailers Association (ERA), which also provides useful statistics about the industry. More information can be found on the ERA website.
Music Industry News Network (Mi2N) and MusicTank are two websites that provide information and news about the music industry.
Trade shows
If you attend a music retail trade show or exhibition, you will be able to gain a lot of useful information. Details of upcoming events can be found on the Exhibitions UK website.
The UK’s leading record show is SOP Record Fair, which takes place twice a year in London. At SOP, labels can exhibit their latest releases and meet with potential buyers from all over the world. With hundreds of guests attending each fair, SOP provides an excellent platform for promoting new music and connecting with key industry figures.
In addition to SOP, there are also a number of smaller regional record fairs that take place throughout the year. These fairs provide an opportunity for labels to connect with local retailers and customers, and they offer a great way to build interest in new releases. Whether you’re a major label or an independent record store, trade shows are an important part of doing business in the UK’s music industry.
Conclusion
Record shop trends are due to stay the same into 2023, with digital sales dominating the market, independent record shops can buck the market trend with their specialist market skills. Record retailers need to target their focus on age related sectors with the 40 – 60 year old age range as their target market.
Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.