Hi, I’m David Wood and welcome to my blog ‘Why Music Shops Are Closing‘ which supports with commercial reasoning to my List of Music Shops That Have Closed. “There’s no doubt that the musical instrument retail industry is one of the hardest industries to survive in”. The two questions I’m exploring below are ‘Why Owners Close Music Shops‘ (looking at the owner’s challenges, circumstances, behavior and psyche) and ‘Why Some Musical Instrument Shops Are Struggling‘ (exploring the plethora of complex factors that impact on the ever changing musical instrument [MI] retail ecosystem).
Why Owners Close Music Shops
It’s important to remember that ‘not all’ music shops close due to financial failure… although some have spectacularly! Many music shops are very successful, but some close for reasons to do with their owner.
[1] Financial Issues
Closure because the owner’s facing financial difficulties.
[2] Retirement
Closure because the owner’s retiring and has no succession plan in place.
[3] Had Enough of MI
Closure because the owner’s burnout and dissatisfied with the Musical Instrument [MI] industry. The everyday economic challenges that face MI retail (overheads, slim margins, competition, supplier problems) can take their toll on some long term.
[4] Had Enough Of Retail
Closure because the owner’s ‘fed up’ with the demanding nature of retail work, that includes: long hours, low return, and having to deal with demanding customers, who can on occasion, be rude and/or aggresive.
[5] Pursuing Other Things
Closure because the owner’s decided to pursue something else, like starting a new business, or getting a basic paid hourly job.
[6] Restructuring Retail Locations
Closure because the owner’s decided to restructure their retail locations. This could be a chain who close an underperforming shop, or has a lease coming to an end (This should not be always seen as a negative).
[7] Divorce
Closure because the owner’s divorcing, which can affect a business – especially if the business is owned by the divorcing couple – as its value is considered an asset in divorce proceedings and may be subject to division between the spouses. This can then impact the business’s operations, ownership, and future stability.
[8] Illness
Closure because the owner’s become too ill to carry on; and If they can’t sell or find a manager, the shop will probably close.
[9] Death
Closure because the owner’s died and there isn’t a successor to take over.
[10] Shareholder Disputes
Closure because the owner’s had disputes with fellow shareholders which can arise from disagreements and conflicts over management decisions, financial matters, or the direction of the company.
[11] Family Disputes
Closure because the owner’s had disputes with their family, which is often because of complex family dynamics which can impact business operations and decision-making in relation to strategy, financial matters, succession planning, and role definition.
[12] Supplier Disputes
Closure because the owner’s had disputes with their suppliers over subjects like contract terms, payment terms, supply agreements, main dealerships, amongst other issues.
[13] Landlords Disputes
Closure because the owner’s had disputes with their landlords over things like rent, lease terms, or the condition of the property.
[14] Local Authority Disputes
Closure because the owner’s had disputes with their local authority over thinks like business rates, planning permission, anti-social behavior issues, etc.
[15] Banking Disputes
Closure because the owner’s had a disputes with their lenders over issues like termination of a loan agreement, overdraft facility, merchant accounts, chargeback disputes, and account closure.
[16] Loss of Key Staff Member
Closure because the owner’s lost a key retail staff member which has the potential for disruption to operations, impact on profitability, and decreasing customer experience. Training someone new in relation to communications, systems, product training, opening and closing procedures, handling transactions, and customer service is an enormous task. If the employee had strong relationships with customers, their departure could lead to customer churn and have a negative effect on the remaining staff’s morale.
[17] Change of Circumstances
Closure because the owner’s circumstances have changed. This could require a move of family home if it’s caring duties (grandchildren, elderly parents, etc). Not all changes in circumstance are negative, take the music shop owner from Suffolk who won $148m on the euromillions.
[18] Viability Issues
Closure because the owner can’t see a viable financial future for the business, which often comes after reviewing their position and reaching the conclusion to close.
[19] Reluctance To Embrace The Modern World
Closure because the owner can’t or won’t embrass digital transformation and technology intergration. The modern world of MI retail requires a whole suite of costly [money and time] digital technology which can include: credit card processing, banking, accountancy, CRM, government reporting (‘making tax digital’), marketing, social media, omnichannel integration, website content, etc.
[20] The MI Ecosystem Is Broken
Closure because the owner believes the MI retail ecosystem is broken and is no longer workable or sustainable.
Since my music shop [Promenade Music] opened in 1989, there’s been a massive change in the musical instrument [MI] retail industry. Although Promenade Music’s doing great, there are MI retailers out there who are struggling, and some who have failed. In my blog Music Shops That Have Closed you’ll see that MI retail has ‘always’ been a difficult industry to survive in. All the shops on the list have closed, many run by incredibly capable and talented business people who had a strong team of MI professionals around them. For some, MI retail seems to be eroding faster than ever, and for it to survive, the potentially insuperable set of problems below need considering and addressing as quickly as possible. For others, MI retail is great.
Why Some Musical Instrument [MI] Shops Are Struggling
[1] Shrinking Profits
MI shops have faced shrinking profit margins due to increased competition and rising costs.
[2] Competitive Pricing
MI shops have faced increasingly competitive pricing.
[3] Economic Climate
Consumer confidence in the UK [2025] is fragile as the nation faces uncertainty around the general economy and the likes of: the middle east conflict, cost of living crisis, employment unpredictability, interest rate anxiety, potential economic slowdown, rising debt of households, inflationary pressures, etc.
[4] Rise of Online Sales
Tidio [customer service software company] reported that retail e-commerce sales worldwide grew in 10 years from $1,336 billion [2014] to $6,767 billion [2024]. The pressure for brick-and-mortar shops to match online prices significantly reduce profit margins; and the trend of consumer using a physical shop for a demonstration before buying online is bad for physical shops, and demoralising for shop staff.
[5] Rent Increases
CBRE [commercial real estate company] reported in April 2025 that “Commercial property continues strong start to 2025”. If a music shop is rented, commercial rent increases can potentially force shops out of business as landlords can increase rent, through rent reviews outlined in lease agreements, which can become unsustainable.
[6] Business Rate System
The UK’s business rates system is archaic and no longer fit for purpose for retail in the 21st century. The annual tax on the value of a business property (that’s levied by local authorities) is out of date and fails ‘brick and mortar’ businesses. This is because the rates payable are based on the rateable value of the property, and warehouses often have a lower rateable value per square foot than high street shops, which create an uneven playing field in the retail sector.
[7] People Cost Increase
Employers faced increased payroll costs [April 2025] due to the rise in the ‘national living wage’ [NLW] and the ‘national minimum wage’ [NMW]. The NMW for those aged 21 and over rose by 77p per hour to £12.21. For a music shop with a team of 10 full time employees on NMW (working 8 hour days, 5 days a week) the increase is £15,892.80 per year, and a chain with 100 employees, the increase is £158,928.00 per year.
[8] National Insurance Increase
Many music shop owners face significantly higher payroll costs due to the [April 2025] UK government increase in employer National Insurance (NI) contributions from 13.8% to 15%, and the lowering of the threshold at which employers start paying NI from £9,100 to £5,000 annually. The employment allowance also increased from £5,000 to £10,500 [the £100,000 eligibility threshold was removed] but these combined changes mean that some businesses need to adjust staffing levels (or other costs) to manage the increased NI burden, potentially leading to a reduction in employee hours, and possible job losses.
[9] Energy Cost Increases
The ‘Office for National Statistics’ [ONS] released a statement [May 2025] about “The impact of higher energy costs on UK businesses: 2021 to 2024”. The ‘average’ electricity price for UK non-domestic users increased from 14.81p per kWh in 2021, to 25.97p per kWh in 2024, which is a circa 75% increase.
[10] Competition From International Retailers
UK music shops have faced increased competition from the likes of Thomann, Music Store, Musik Produktiv, Bax, Woodbrass.
[11] Competition From Non-specialist Retailers
UK music shops have facef increased competition from the likes of Amazon, Alibaba, AliExpress, Shein, Temu, Charity Shops.
[12] Suppliers Who Show Favoritism
Some suppliers offer preferential deals to the MI retailers they favour. This manifests in better pricing, bonuses, retrospective discounts, settlement terms, special pricing agreements, growth incentive rebates, consignment stock, marketing development funds, co-op marketing programmes, event marketing, promotional activities, and anything else they can think of that will result in a financial incentive for the favoured dealer.
[13] Suppliers Who Offer Deals For Quantity
Some suppliers offer preferential deals to MI retailers who can handle large quantities of stock. If a ‘small’ MI retailer can’t handle the large quantities – because of storage, cash flow, etc – the downside for them is lost sales, which can result in the potential damage to the relationship between the small MI retailer and their customer.
[14] Suppliers Who Sell Direct To Consumers
The downside of suppliers selling direct-to-consumer [D2C] is the increased competition it brings for retailers. The potential loss of sales and erosion of the retailers customer base will probably result in the retailer de-listing the suppliers products. As a Nike shareholder, I know only too well when a D2C strategy goes wrong! Nike’s $27 billion loss in market value was largely attributed to its D2C strategy [read] and thank goodness we did a u-turn. The CEO’s of major MI manufacturers should take heed of Nike’s real life cautionary tale.
[15] Suppliers Who Sell Direct To Industry Clients
MI suppliers who by-pass their authorised dealers to supply directly to professional musicians, recording studios, and educational establishments, risk losing the dealers emotional attachment, which will ultimately damage their ongoing commercial engagement with their supplier.
[16] Suppliers Who Have One-Size-Fits-All Dealership Agreements
Some MI suppliers have a ‘one-size-fits-all dealership agreement’ when it comes to stocking requirements. This means a dealer in a small town has to carry the same level of stock as a major city dealer. So if the population of Morecambe is 35k, and the population of Manchester is 550k [over 15 times more] the supplier will expect the Morecambe dealer to carry the same level of stock as the Manchester dealer.
[17] Suppliers Who Don’t Appreciate Brick-and-Mortar Shops Anymore
There are MI suppliers who don’t seem to appreciate – or take into account – the cost of running a brick-and-mortar retail business, over an online business.
[18] Suppliers Who Exclude Dealers From ‘Agency’ Agreements
An agency agreement is a shift in sales model – that is only offered to selected dealers – where the manufacturer sells directly to consumers through utilizing their ‘selected’ agents as a delivery and service network. The ‘agency model’ means the manufacturer owns the inventory and sets the price to the consumer, while the agent primarily handles the final sale, delivery, and service aspects.
[19] Suppliers Who Won’t Supply Small Dealers With ‘One-off’ Items’
There are suppliers who won’t supply a ‘small town dealer’ with a ‘one-off’ item so the dealer can’t supply their regular loyal customer, who wants to support them, and has bought off them for years. Ultimately, this means that the small town customer can’t buy from the dealer they want to buy from.
[20] Suppliers Paying The Salary of a Music Shop Staff Member
It’s been known for a supplier to give an advantage to one retailer over another by paying the salary of a member of staff in a shop.
[21] Suppliers Who Offer Unfair Floor Stock Deals
It’s been known for a supplier to give an advantage to one retailer over another by supplying shop floor demonstration models on a consignment basis.
[22] Suppliers Who Select Retailers For Special Advertising & Promotion
It’s been known for a supplier to give an advantage to one retailer over another, by giving a selected retailer a budget for advertising and promotion which can be done as part of a trade spending agreement, cooperative advertising, retailer incentive, promotional allowance, or in-store promotion.
[23] Governments Move From Music Education In State Schools
Music education highlights cognitive, social and emotional benefits; and enhances academic performance, develops essential social skills, encourages creativity, and promotes cultural awareness. Sadly, UK governments have moved away from music education in the curriculum and this had a negative impact on MI retail. There’s been a reduction in curriculum time for music, fewer students taking music GCSE, and a decline in music teacher recruitment. Some music hubs and state school music departments have seen funding cuts, leading to job losses, and a reduction in the support available for music education.
[24] Effect That Funding Cuts Have On The Arts
Funding cuts of ‘The Arts’ have led to job losses, venue closures, and reduced access to arts education and participation. Arts organizations have experienced budget reductions which has resulted in an erosion of arts institutions, art programmes, orchestras, and opera companies who have faced funding reductions which has led to potential damage and the undermining of their work. The cuts have a cascading effect, impacting not only on artists and organizations, but on audiences which leads to a reduction in the overall cultural landscape and opportunities for participation. Funding cuts have made it harder for arts organisations to afford musical instruments and equipment, which has had a negative impact on MI retail.
[25] University Music Departments Closing
Along with many other university music departments that have closed (Cumbria, Reading, Exeter, Roehampton, East Anglia, Essex, Abertay Dundee, Wolverhampton, Oxford Brookes, Kent), Lancaster Uni closed their music department, and the problem for shops like Promenade Music – based only a few miles from Lancaster – is not only the loss of sales that ‘may’ have come from the music department itself, but the loss of sales we ‘may’ have got from their students. If the undergraduate music course enrolled 50 students per year, and the postgraduate course enrolled 40 students, that means that 90 music students would come into the local area each year (potentially buying instruments, accessories, and sheet music). If just 20% of those students continued living in the area after their studies had finished, there would be an extra 360 musicians living in the area in a 20 year period.
[26] Lack Of Societal Recognition For Musicians
There is a lack of societal recognition for professional musicians [obviously not the superstar musicians] which can manifest as underappreciation, low pay, financial instability, and difficulty securing consistent work. A general lack of respect for the craft, and sporadic nature of work, often results in musicians needing to take on part-time jobs, or rely on financial support from family and friends, to make ends meet.
[26] General Lack Of Support For Music
There’s a lack of financial support for the music industry, which impacts various sectors from grassroots venues to individual artists. Core grant-in-aid funding for music organizations has decreased, leading to increased reliance on private funding and earned income. Grassroots music venues – crucial for emerging artists – struggle with rising costs of energy, rent, business rates etc, which impacts on their ability to operate and host live music. There’s now insufficient investment in artist development and the industry prioritizes ‘numbers over artistry’ and the post-Brexit situation means European tours are more challenging logistically and financially. The lack of a tax credit scheme for music production – unlike other creative sectors – puts UK musicians at a disadvantage.
[27] Competition For Music From Other ‘Hobbies’
Playing a musical instrument faces competition from a variety of leisure activities, including: sports, mobile phone usage, social media, and gaming. These hobbies offer diverse forms of entertainment and engagement, potentially drawing attention and time away from music participation.
[28] We Need Musical Instrument Heroes
Musical instrument heroes have always played a vital role in the musical instrument retail industry, no matter what the instrument. Their influence has inspired new musicians and guitar heroes like: Jimi Hendrix, B.B. King, Eddie Van Halen, Slash, Eric Clapton, have all helped to sell thousands of guitars over the years. Every instrument’s had it’s ‘heroes’ and music shops should be very thankful for the likes of: James Galway [flute], Lang Lang [piano], Richard Clayderman [piano], Nigel Kennedy [violin], Oscar Peterson [piano], Evelyn Glennie [percussion], Louis Armstrong [trumpet], Acker Bilk [clarinet], Earl Scruggs [banjo], Paul McCartney [bass] etc.
[29] Musical Instrument Budgets Vs Mobile Phone Budgets
Some consumers expect a £250 guitar [student grade instrument] to ‘last a lifetime’ but have no problem changing their expensive mobiles every couple of years.
[30] Need For A ‘Musical Instrument Retailers Association’
The musical instrument retailers that remain in business in the UK need a strong ‘Association’ for ‘Musical Instrument Retailers’ … and only retailers. Although there’s an association for the wider MI industry called ‘The Music Industries Association’ [MIA], it’s a trade body that represents the interests of all businesses who are making and selling musical instruments and associated products. It includes manufacturers, distributors, publishers, education providers, examination boards, supporting businesses, and some retailers… but not all by a long way.
[31] Poor Appearance of Some Music Shops
I’m not saying my shop is perfect because it isn’t, but some shops have been badly neglected which can impact on the customer experience and sales performance. This can stem from various factors, including: financial constraints, lack of understanding about shop aesthetics, or a focus on other business priorities. While the core function is to sell instruments, the overall atmosphere and visual appeal can significantly influence customer perception and purchasing decisions.
[32] Lack of IT Investment
Some music shop owners have underinvested in IT infrastructure, often due to the inability to adapt, lack of awareness, cost concerns, and the potential disruption to ongoing operations while the systems are being installed. Not keeping up with IT developments can lead to retailers struggling to adapt to changing consumer demands, optimize inventory, and personalize customer interactions. This can lead to missed opportunities (inventory management, personalized marketing, etc), security vulnerabilities, and poor staff and customer experience. This underinvestment can manifest as loss of competitive advantage, outdated hardware and software, inadequate network capacity, a lack of robust data storage, and damage to reputation (as data breaches and poor customer service can negatively impact a shops reputation and brand image).
[33] Lack of Investment by Some Owners in Their Personal Development.
The owner’s personal development – through continuous self-improvement – is crucial for the success of a music shop. Developing skills like sales, customer service, leadership, management, delegation, communication, conflict resolution, communication, financial literacy, time management, organizational behaviour, process management, problem solving, decision making, emotional intelligence and self-awareness can enhance the overall performance of the business.
[34] Lack of Investment in The Personal Development of Staff.
Like in point 33, the owner should encourage their staff in personal development through continuous self-improvement. It must be remembered though, some staff won’t be interested in this.
[35] Lack of Investment in a Website
A lack of digital investment in a music shop’s website can hinder economic growth and manifest in missed opportunities, stagnant economic growth, and loss of market share. A website can significantly benefit a music shops reach, providing 24/7 accessibility, offering convenience, and enabling targeted marketing. It can also reduce overhead costs and enhance customer engagement. A well-designed website can help a shop to establish a strong online presence, building brand credibility, and providing a platform to showcase the shop’s values, products, and unique selling points.
[36] Missed Opportunities of Services
Some music shop owners are missing opportunities to generate more income by ‘not investing’ in the “other services” they could offer, such as repairs, lessons, hires, rentals, moving services, recording services, etc. These can provide valuable revenue streams.
[37] Lack of Retailer & Supplier Relationship
The lack of effort by some music shop owners to build relationships – and seek help from manufacturers and distributors – can lead to an ‘us against the supplier’ mentality. The supplier / retailer relationship should be about working together – as a partnership – to sell as much product as possible.
[38] Owners Who Take Too Much Money Out Of Their Businesses
There is little doubt that some music shop owners have prioritised their own personal spending, over the needs of their business which has gone on to negatively impact their business’s financial health and long-term sustainability. An owner who spends ‘business money’ on one’s self diverts funds away from essential business requirements for funding inventory, rent, marketing, and the necessary equipment, can hinder growth, reduce competitiveness, and even lead to the business’s failure.
[39] Retaining Staff and Not Employing Unsuitable Staff
Some music shops struggle to retain staff – often because of the nature of retail work – which can then lead to the hire of unsuitable staff… which can significantly harm the business. This is often happens due to them not having (a) the musical skills that are crucial for assisting customers with instrument selection and advice, (b) the in-depth working knowledge of the products in terms of specification, how the product works, and how it can be used, (c) the required communication skills to deal with customers, so customer interaction isn’t hindered which can lead to the loss of a sale, and (d) personal qualities like passion, enthusiasm, and positive attitude which enhances a shop’s atmosphere and leads to better customer service and increased success. The appointment of unsuitable staff happen for various reasons, including: a pressure to fill the role quickly, the lack of a structured hiring process, relying too heavily on employee recommendations, making hiring decisions based on intuition, and – in some geographical areas – the lack of available talent.
[40] Lack of New Musical Instrument Innovation
MI retail struggles because there have been very few ‘genuinely new imusical instruments’ that have made it to market over the last 50 years. Although we’ve seen developments in electronic instruments [especially synths in the 1970/80’s] and hybrid instruments [blending acoustic type instruments with digital components], the last half century has been dominated by products that are ‘theme and variations’ from the past. Today, models like the Fender Stratocaster [released 1954], Martin D28 acoustic guitar [released 1931], Gibson Les Paul [released 1952], Upright Piano [released early 19th century], Trumpet [released 19th century], Marshall 1960A 4×12 cab [released 1962], Violin [released 16th century], Banjo [released 16th century], Fender Twin Amplifier [released 1952], Ukulele [released 18th century], and Saxophone [released 19th century] are still the staple diet of sales for music shops around the world.
[41] Growth of Consumer-To-Consumer Sites Selling MI
As the growth of consumer-to-consumer (C2C) sales have grown through online marketplaces like eBay, Reverb, Facebook Marketplace, Gumtree, Vinted, reSound, etc some consumers have found this a convenient way to buy and sell used musical instruments and equipment which has impacted negatively on music shops.
[42] Consumer Disappointment When Visiting Music Shops
Some consumers have experienced disappointment when visiting music shop due to factors like: poor customer service, lack of knowledgeable staff, unfriendly staff, lack of stock, dirty shops, dirty stock, unpleasant surroundings, difficult parking, inappropriate or overly loud music. These issues can lead to customers leaving without making a purchase and never going back.
[43] Some Musical Instruments may be ‘Out of Fashion’
Some musical instruments may have fallen out of public favour over the past few years because they may be perceived as less relevant due to evolving musical tastes. As musical genres evolve, instruments associated with ‘older style music’ may be less prominent and some orchestral instruments (e.g. violin, clarinet, trumpet, etc) may deter participation with beginners – who want to achieve something immediately and get immediate gratification – as the thought of learning and practicing an instrument for several years to become proficient is unappealing.
[44] Consumers are “Too Busy’ to Drive to a Music Shop
The trend of consumers favouring online musical instrument purchases over visiting physical music stores, despite the in-store experience, is often due poor previous experiences and the convenience and time-saving aspect of online shopping. Online shopping now allows consumers to browse and purchase instruments and equipment from anywhere, at any time, eliminating the need to travel. Luckily, while online shopping is popular, physical MI shops still hold value for some consumers. The ability to browse, discover new instruments, and potentially get personalised advice from staff remains appealing, but only to certain shoppers.
[45] The Lack of ‘Bands’ in the Main UK Charts
As of 2025, the UK charts are dominated by solo artists and collaborations, with a noticeable decline in the presence of bands. In the first half of the 2020’s, bands spent only a few weeks at number one, with one of those weeks attributed to the Beatles. This trend shows a move away from bands.
[46] Online Video Demos
Some consumers don’t feel the need to visit a music shop anymore to see and hear the latest gear because there are so many online / youtube video demos showing it.
[47] Some Consumers Don’t Appreciate Having a Local Music Shop
Although music shops are where lifelong friendships have been made, some consumers don’t appreciate or give value to having a local music shop anymore. As well as offering musical instruments, equipment, accessories and services, a local music shop fosters a sense of community among musicians, where it is a central point for musicians to connect, share knowledge, share experiences, and talk about gear, gigs, and venues.
[48] Some Consumers Don’t Realise That Music Shop ‘Set Up’ Instrument Pre-Sale
Some consumers don’t appreciate, realise, or understand that good music shops ‘set up’ an instrument before it goes out for sale (some online sellers just send it out without even opening the box to check it).
[49] Some Consumers No Longer Care About ‘Shop Local’
Some consumers no longer care about shopping local and supporting small family-owned businesses who employ local people within their local community.
[50] Some Music Shop Owners Are Too Arrogant
Some music shop owners are that arrogant, they don’t want to give a little nod of respect to competitors or the shops who have gone before them. They’re all about themselves and probably don’t listen to the advice of their stakeholders (manufacturers, distributors, shop staff, customers, professional advisors, bookkeepers, accountants, lawyers) who often have the answers when things get tough.
David Wood: As well as owning Promenade Music, I’m an ‘Honorary Teaching Fellow’ in the Entrepreneurship and Strategy department at Lancaster University Management School [my LUMS page] and I’m always interested in hearing opinions and thoughts on the subject of MI retail. If you would like to make contact, please email at dw@davidwood.biz