The Future of Record Stores

[beantownbubba]

Interesting email from the CEO of Newbury Comics, a new england chain of record stores geared to the "alt indie" crowd. For a long time they were the best around, now they're pretty much the only one around.

Newbury Comics-No Future?!

Our Company is approaching a long awaited crossroads. Behind us is our storied past of bringing cutting edge music to a highly enthusiastic, and very loyal customer base.

When John and I opened our then tiny store front on Newbury Street in 1978, we had no idea the ride we were in for! Over the ensuing years, we built stores all across the region, worked with hundreds of the most interesting and creative people you could imagine, and in the process impacted the cultural perspective of New England.

We have sold over 90 million records, CDs and DVDs, had hundreds of artist in-store appearances and employed perhaps 2400 different people through the years.

We have out lived, out witted and out lasted The Coop, Strawberries, Lechmere, NE Music City, Tower Records, HMV, Popcorn, Good Vibrations, Virgin Megastore, Circuit City and now sadly, Borders. We are left competing at Brick and Mortar with the likes of Wal-Mart and Target, and what remains of Best Buy's and FYE's media offerings.

Looking forward, we can see we surely must morph, or slowly die. There simply isn't enough remaining customer demand to support more than a handful of our stores in a few years if we don't change our mixture of goods.

Many of you have continued to support us, even as your own music consumption has shifted to online options. All of you have noticed our not so subtle shift in emphasis from pure music, to music and DVD, to now at times an odd mixture of new and used CDs + DVDs, combined with an increasing amount of pop culture and fashion items.

We recently launched a new "hybrid" store in the South Shore Plaza in Braintree, moving our store from across the street. Yeah, I know, malls kinda suck sometimes. This store features way more fashion than we have ever presented. The results are very encouraging so far, with CD + DVD sales up, along with a very strong increase in other non media categories.

We have also built our web efforts to the point where they represent 25% of our total sales, mainly through eBay, Amazon, and Punk.com. These web sales help support our overall cost structure, and may be a potential future path for the entire company.

We are right now in the process of building another hybrid superstore in the Natick Mall. The next 6 months will be critical in determining whether we have a brick and mortar store concept which will survive the steady decline in CD + DVD sales we are now experiencing in all of our other locations.

I know we can't turn back the clock, and I know we have to change dramatically over the next 3 years. The question is - What to do?! I always say the 3 most important words in business are "I don't know!" Here's to hoping we can figure it out.

I would very much appreciate it if you could provide us with some feedback on our future.

Please fill out the survey below and send any additional thoughts you might have to me directly to mike@newburycomics.com. Thanks so much for both your honest feedback and your support over all these years!

mike dreese
ceo and co-founder

[sg207]

In related news, Ear X-Tacy in Louisville, which is one of the 2 best record stores I've ever been to, closed yesterday. Definitely a sad day.

[Tequila Cowboy]

It's amazing any of these have lasted this long. I closed my last store in December of 1995 and while, if not for some family issues, I could held out a few years more, it was clear then that the end was year and that was BEFORE the digital music revolution. What I hope is that in some form there will be a way for there to be stores with people passionate about music to work and advise people and new artists, etc. I miss opinionated record store clerks even when they told me what I was buying sucked.

[Flying Rabbit]

A friend posted an article on FB yesterday that said major labels will cease production on cds at the end of 2012. While there were no sources quoted in the article, I can completely believe it. The article went on to say that cds would become the new "limited edition" version of albums, for outlets like Amazon--which, is by far the largest retailer of physical media at this point.

Record stores play a big part of my story in high school through college, so its sad to see and hear of monuments of industry closing down. The record store that I most visited in high school closed about 5 years ago, and in the town I live now there are three places you can get cds--WalMart or (limited) Best Buy and Target. With the closure of FYE and Borders, there went any way to actually get independent releases (as bizarre as that sounds) in my town.

[Penny Lane]

In related news, Ear X-Tacy in Louisville, which is one of the 2 best record stores I've ever been to, closed yesterday. Definitely a sad day.

It's my favorite, too. Very sad.

[Clams]

Record stores play a big part of my story in high school through college, so its sad to see and hear of monuments of industry closing down. The record store that I most visited in high school closed about 5 years ago, and in the town I live now there are three places you can get cds--WalMart or (limited) Best Buy and Target. With the closure of FYE and Borders, there went any way to actually get independent releases (as bizarre as that sounds) in my town.

You could say that the climate for record/CD stores has become very chili.

[Zip City]

Even Best Buy's music section is steadily shrinking. It used to be the big thing to get people in the door, and it's being squeezed down to just 3 or 4 small aisles.

At least they carry a little vinyl, I guess

[scotto]

Like it or not, vinyl is the future for record stores and physical musical media in general. Stores near me that have a healthy vinyl selection are thriving (Euclid Records in St. Louis even opened a new location in New Orleans). It's still a small percentage of overall sales, but selling vinyl both in the store and online is what's keeping many retailers afloat.

[Flying Rabbit]

Record stores play a big part of my story in high school through college, so its sad to see and hear of monuments of industry closing down. The record store that I most visited in high school closed about 5 years ago, and in the town I live now there are three places you can get cds--WalMart or (limited) Best Buy and Target. With the closure of FYE and Borders, there went any way to actually get independent releases (as bizarre as that sounds) in my town.

You could say that the climate for record/CD stores has become very chili.

[Flying Rabbit]

Like it or not, vinyl is the future for record stores and physical musical media in general. Stores near me that have a healthy vinyl selection are thriving (Euclid Records in St. Louis even opened a new location in New Orleans). It's still a small percentage of overall sales, but selling vinyl both in the store and online is what's keeping many retailers afloat.

I almost wonder if vinyl will pass as well though. Its in style now, but is it going to pass as well?

[Penny Lane]

Like it or not, vinyl is the future for record stores and physical musical media in general. Stores near me that have a healthy vinyl selection are thriving (Euclid Records in St. Louis even opened a new location in New Orleans). It's still a small percentage of overall sales, but selling vinyl both in the store and online is what's keeping many retailers afloat.

I almost wonder if vinyl will pass as well though. Its in style now, but is it going to pass as well?

I think as long as they keep the prices reasonable and offer the digital downloads with most albums, vinyl will continue to thrive.

Really good article I read a while ago from The Economist:

Back to black
Oddly, the hunger for records is widespread
http://www.economist.com/node/21526296

[sactochris]

I remember being really proud of my Niece when she came from BC for X-mas during her freshman year and she had a Newbury Comics bag with her.

[scotto]

Like it or not, vinyl is the future for record stores and physical musical media in general. Stores near me that have a healthy vinyl selection are thriving (Euclid Records in St. Louis even opened a new location in New Orleans). It's still a small percentage of overall sales, but selling vinyl both in the store and online is what's keeping many retailers afloat.

I almost wonder if vinyl will pass as well though. Its in style now, but is it going to pass as well?

It'll obviously never match the '60s-'80s glory days in terms of sales, but with the wide array of media available these days, neither will anything else.
Yes, records are the trendy prop and must-have icon for catalog shoots and dormrooms, but they've always been the format of choice for a lot of folks for decades, withstanding the open-reel tape, the 8-track, the minidisc, and now the CD. Even though many folks think they went extinct during the CD era (they didn't), there always has been and always will be a market for vinyl in some shape or form. Just google something like "buy turntable online" or "order new vinyl" and count the choices. I can't see the format becoming obsolete anytime soon.

[Kudzu Guillotine]

A friend posted an article on FB yesterday that said major labels will cease production on cds at the end of 2012. While there were no sources quoted in the article, I can completely believe it. The article went on to say that cds would become the new "limited edition" version of albums, for outlets like Amazon--which, is by far the largest retailer of physical media at this point.

I read a similar (if not the same) article that was recently posted in the Music Corner section of the Steve Hoffman Forum. Like you mentioned though, the source for this information seems to be sketchy at best. That said, it wouldn't surprise me if it's true. If it does come to be I will do my best to seek out the highest quality form of music that I can but I refuse to succumb to a mp3 only world. On the subject of Best Buy's ever decreasing CD stock, I've noticed the same thing in my area. Some titles have even been next to impossible to find. Funny that one location has a pretty huge vinyl display though. As for local record stores, Schoolkids may have to move again (I think they've had something like five different locations along Hillsborough Street in Raleigh over the years) if they end up taking a wrecking ball to the corner of Hillsborough Street and Enterprise (also home to Sadlack's Heroes, where everyone from Corrosion of Conformity to Whiskeytown have made a name for themselves). At this point, no one seems to know for sure. What I do know is that it's the last store standing in the Schoolkids chain (the one in Athens, GA closed it's doors in August) and it's the last independent record store in Raleigh. Thankfully, we also have CD Alley and All Day Records in Chapel Hill and Off Beat Records and Bull City Records in Durham.

[Flying Rabbit]

Same article, Kudzu.

@Scotto--the problem with your example of:

Just google something like "buy turntable online" or "order new vinyl" and count the choices. I can't see the format becoming obsolete anytime soon.

It's a bit problematic. I can google Justin Beiber and get a billion hits. Do we really think that defines what will stay in style or what denotes what has staying power?

I guess my point is this--vinyl is a vanity item at the moment. I love vinyl, and have bought it for probably close to 15 yrs now. I'm guessing many of you are vinyl people as well (oh, that came out wrong)--so, it might be easy for us to not see just how fad-ish it is at the moment. Also, let's not forget that right now people are clinging to a physical format. The introduction of a format that looks cool, and comes with a download card is much more appealing than the boring cd format. Will that continue? I hope so, but I don't see the popularity continuing past 2-3 more years.

I'd love to see the demographics on who is buying vinyl also. Is it evenly spread across young kids to adults?

I hate to be a Debbie Downer, because honestly, I hope it never goes away.

[Slipkid42]

Actually, FR, you are a Dougie Downer. Nothing will stop progress. As enamored as we are w/vinyl, the youth of today can't be bothered with it. Physical media will go the way of newspapers, magazines & books (which is to say that they will be gone). When the record stores are all gone, they will stop making vinyl. It might be 20 or more years from now, but it is coming.

[Erdlivz]

It's a damn shame the demand has continued to hit a wall. Damn the consumer laziness and the big box retailer with economies of scale that can kill it. I enjoy record stores and have collected vinyl for a while. I'd choose an independent retailer over big box/corporate any day.

On a devil's advocate notion...record stores have adapted by including other goods and services but most stores I've visited have the same format/concept and nothing new going on. There's more to it nowadays than the records to me...especially from a business standpoint. In-store performances are one thing but there's a world of services, events and options that can add to the mix. Customer service is a part of every retail business and this is retail. I'm shocked Ear X-Tacy closed. I felt like they were in tune and ahead of the curve. I always felt welcome there. They understood customer service with their business. Unfortunately some of the stores I visit, customer service seems to be laughable. I'm not knocking all stores. I always preferred SchoolKids over Wuxtry because the guy up front greeted me when I came in and actually picked my brain. There's more to it than putting records in bins and hoping they sell. Just my experience. Maybe they had a bad day. It's a shame because Wuxtry has a better selection and I never went back after that initial visit. I guess I look for more in my experience and that could translate to some of the market these stores are fighting for. If I owned a business I wold be on the floor greeting every customer and trying to understand what they were looking for. Especially now. This isn't High Fidelity. Such a cliche to me with record stores.

Now.....I do think the big box retailers and change in music format has the most to do with the decline. I understand independent stores cannot compete with the retail prices offered by corporate competitors. Someone somehow will change the model and adapt. The record store of the future to me is multi-faceted and is best incorporated with another business service to alleviate the current burden. Unfortunately we live in a time that doesn't bode well for the small business owner and capital improvements. I also think that some of the struggling businesses out there point the finger in the wrong direction some times and are resistant to change. Simple things can help lead to more business in a time any business is crucial.

Just my take. Carry on.

[tinnitus photography]

i can get by w/o buying books in physical format again, but not music.


strangely enough, i still like newspapers.

[Slipkid42]

i can get by w/o buying books in physical format again, but not music.


strangely enough, i still like newspapers.

Then cherish this time that you still have a newspaper to read ('coz those babies will be gone before you know it).

[Flying Rabbit]

Most of the good writers have migrated to blogs anyway. Sportswriting, at least.

[RevMatt]

My best friend closed his record store recently. At one time it was one of the biggest in New Jersey with many in store appearances from indie bands. It was a big enough place to have a stage and you could get just about anything you wanted. In its final carnation it was a tiny hole in the wall. The primary focus was used vinyl and bootlegs. When they lost their lease they were unable to find another suitable location.

I try and get to Vintage Vinyl and Jack's Music (Fords, NJ and Red Bank, NJ respectively) every week and drop some money. I do not want to lose these places. Vintage has the best selection in the entire state. Jack's is cool as well.

The mp3's are suitable for all of the crappy artists out there who are putting out crap. But can you imagine Miles Davis allowing Columbia to release an album of his only on the mp3 format? The pendulum is going to swing the other way and I will tell you why. Sometime soon a really great band whose talent cannot be denied by anyone is going to get noticed. They are going to be so good that people will "get" the fact that you need high end stereo equipment to hear them properly. Remember, before Sgt. Pepper most people had crappy little record players. But within a couple of years everyone started buying high end gear that used to only be owned by classical and jazz music geeks.

I will tell you one reason why I am optimistic. Last night I caught Alabama Shakes on some MTV online music show. They tore the roof off the sucker. Even the host of the show seemed to have a "WTF did I just hear?" reaction. Then they were followed by some blonde pop chick wannabe who was accompanied by canned music while she shook her ass. I am predicting a "Smells Like Teen Spirit" level revolution soon. The kids are no longer going to be spoon fed corporate garbage.

[Zip City]

the outpouring of sadness on Facebook for Ear X-Tacy is kinda amazing

[Kudzu Guillotine]

Actually, FR, you are a Dougie Downer. Nothing will stop progress. As enamored as we are w/vinyl, the youth of today can't be bothered with it.

From what I understand, and this is just from talking to local record store clerks as I don't recall actually seeing any numbers but the local college kids seem to account for a lot of vinyl sales. Is it because it's the "hip" thing to do and is just a passing fad? Who knows, but it's not just older folks buying vinyl. Then again, I'm in a very college-centric (for lack of a better word) area with UNC, NC State and Duke University all in the immediate vicinity.

I always preferred SchoolKids over Wuxtry because the guy up front greeted me when I came in and actually picked my brain. There's more to it than putting records in bins and hoping they sell. Just my experience. Maybe they had a bad day. It's a shame because Wuxtry has a better selection and I never went back after that initial visit. I guess I look for more in my experience and that could translate to some of the market these stores are fighting for. If I owned a business I wold be on the floor greeting every customer and trying to understand what they were looking for. Especially now. This isn't High Fidelity. Such a cliche to me with record stores.

I also preferred Schoolkids over Wuxtry. Most every time I've ever been in Wuxtry I have been met with some kind of pretentious, indier-than-thou type of remarks that served no other purpose than to turn me off. Then again, I've also had some very pleasant shopping experiences there but the last time I was there, the looking down their nose at me approach sent me out the door. I'll always visit Wuxtry when in Athens but I do wish that snooty attitude associated with record stores would change. I recently interviewed with Schoolkids in Raleigh (didn't get the job, unfortunately) but being kind to the customers was a huge part of what they were looking for.

[Erdlivz]

I love this topic and it's so unfortunate for small business owners in general. My thoughts and brainstorming encompass how to make independent record stores work. I guess that's the point of the thread and this market in general. I feel like the only way is to make records, cassettes, cd's and all other formats a secondary good at a store or venue. The respected titans continue to fall and Ear X-Tacy closing is shocking. I'm just shooting at the hip and throwing in some of my ideas and pipe dream.

I always thought a great way to sell vinyl and so forth would be to incorporate it at a music venue. I love The Handlebar in Greenville, SC. They have a great restaurant and bar, decent size room and could add a small retail outlet. I think it's a perfect combination. I guess Third Man Records is similar in some ways. I'm thinking a touch bigger. I would open a 8k-12k square foot facility. Bar, restaurant/tapas, small music venue and retail store. Let's call it 'Sound Check.' The venue is open for lunch and has a dividing window so you can see into the venue. Patrons can even view the Sound Check of the upcoming night's band while at the bar, browsing for vinyl or just eating lunch. I grew up near a restaurant that had a glass window dividing itself from several booths to an ice rink that a semi-pro team practiced on almost daily. No interaction with the team or band in this case. I'm venturing a bit off topic but think the future of buying vinyl has to be provided someway outside-of-the-box. Wilmot has it right at the new Georgia Theater. He's completely expanded his services and business. Add a small vinyl outlet. How about SchoolKids Records...now upstairs at The Georgia Theater. Keep the brand going and both sides win. He can save a local business and garner some leasing fees for their small outlet.

Just thoughts. I also think a place like Junkman's Daughter in Athens can flourish with adding to their vinyl inventory. I can spend hours in that place looking at all the useless crap they have but it's always filled and is so damn unique. People will support vinyl stores and so will businesses if the price is right. Hell, SchoolKids could've worked with Junkman's in using their second floor to sustain their brand and future.

Nonetheless, it sucks for all small businesses right now.

Just don't be an arrogant dickhead or not acknowledge me when I'm in your store.

[beantownbubba]

Newbury Comics does a lot of what you're talking about, Erd, except the food part (see first post in this thread).

There are probably about 4 different threads being woven thru this single thread.

Re vinyl: I suspect the current upsurge in interest in vinyl is something of a fad, but given that vinyl never disappeared, I think scotto's right, there's going to be a place for vinyl as long as music is still being sold.

But the fundamental question goes far beyond the popularity of vinyl or the survival of indie record stores. The question really is, how does anyone make money making music now and into the future? The answer hasn't emerged yet and the social pressure and the technological evolution is still in the direction of resistance to paying for music (not the people here obviously, but the larger society). I'm not predicting "the death of music as we know it" or anything like that, but it's pretty clear that the music industry is in transition away from the old model w/out any idea of where it's heading. The ultimate point is that if there's no money to be made making music, very few people will make music (professionally that is). I'm pretty sure that somebody will figure it out before we reach that point, but it's not a given, and it's not at all clear what it will look like if/when somebody does.

[Erdlivz]

Newbury Comics does a lot of what you're talking about, Erd, except the food part (see first post in this thread).

I saw that. I like the idea, albeit in a mall of sorts. It's got to be disheartening but hopefully it works. Trial and error.

[Kudzu Guillotine]

Schoolkid's in Raleigh is located between Sadlack's Heroes and Buddha's Belly, a head shop. The perfect marriage if you ask me. Sadlack's is essentially a sub shop (thus, the "Heroes") but they also host live music on their patio (and inside) several times a week. It's also really the only place of it's kind in Raleigh, not just because of the live music aspect but because of the clientele. It's located across the street from NCSU but it doesn't just attract college students, it brings in folks from all walks of life. Thing is, I've been told Schoolkids did a better business in their previous location, adjacent to a FedEx.

But the fundamental question goes far beyond the popularity of vinyl or the survival of indie record stores. The question really is, how does anyone make money making music now and into the future?

Good question and I've seen it raised amongst everyone from Jimmy Page to Jimmy Buffett in recent months, both of whom have expressed thoughts about uploading new music to their respective websites for fans to download. Thing is, neither of them have acted on it. In a way, I'm kind of glad because I fucking hate the idea of a mp3 only world.

I know folks love to hate on Bono and U2 but Bono recently had this to say on the future of U2 and how they might continue to market their music (this comes from The Irish Times with the headline: "If we don't come up with a good reason to make a new album, we should just fuck off")':

Looking back at the trauma of getting Achtung Baby on its legs and having to forge a new sound and identity, Bono says, "It's actually worse for us now than it was when we went to Berlin."

He shrugs off the fact that the band have just recorded the biggest-grossing live tour in the history of popular music and wonders whether U2 can still be relevant. "We can play the big music in big places. But whether we can play the small music, meaning for the small speakers of the radio or clubs, where people are living, remains to be seen," he says. "I think we have to go to that place again if we're to survive.

"There are so many U2 albums out there. We need a reason for another one. The whole point of being in U2 is that we're not here to be an art-house band. Our job, as we see it, is to bring the art house to the mainstream; our job is to puncture the mainstream."

Earlier, he was using an iPad with the Achtung Baby songs and videos on it. "That's probably what our new album will look like," he says. "I've been talking about this for the past four years.

"Our last album was the first album to be made available as an app with Blackberry devices, but it didn't work: the functionality was not what it could have been. New formats are going to happen. I'm always banging on about this. The app format brings you back to that world of gatefold sleeves, of being able to read lyrics – and [now of] being able to play the album at home on your plasma TV."

Personally, I would be ok with what Bono is talking about, as long as the music is of high audio quality. I remember when people thought the CD-ROM would replace album cover artwork and liner notes but those have become as antiquated as the LaserDisc and 8-tracks.

[Tequila Cowboy]

Vinyl survived the CD revolution and is thriving in the digital revolution. It isn't going away anytime soon, as long as there are audiophiles there will be vinyl and the current upswing of college kids buying it is going to keep it around that much longer. Is it a fad with the kids? Of course it is but if just 2 out 10 become audiophiles because of it the format will survive, albeit in niche form.

That being said the CD is going the way of the dinosaur and vinyl alone can't sustain record stores. Used CD's have kept the stores in business long past their expiration date and no one even wants those anymore. It's sad as hell, but completely understandable. The funny thing is that Erd and othesr have posted that they didn't like the pretentiousness and the "High Fidelity" aspect of records stores and, to me, that was the best part about them. I can remember being 18 years old and going in to my local Rose records to buy something my friends were buying and the manager of the store wagging his finger at me and telling me to quit buying shit and then going on a twenty minute rant about the newest punk band or whatever. Changed my life. Could those types occasionally go too far? of course but it was part of the experience. Who does that now? Who tells a young impressionable kid his taste is shit and plays him Two Cow Garage or Glossary or The Hold Steady? Sometimes you could just walk into a store and ask the guy or gal working there what was new and good and they'd stop the music playing and put on something saying "you have GOT to listen to this man!". Where does that come from now? I don't know but to me that's the saddest part.

[tinnitus photography]

I try and get to Vintage Vinyl and Jack's Music (Fords, NJ and Red Bank, NJ respectively) every week and drop some money. I do not want to lose these places. Vintage has the best selection in the entire state.

better than Princeton Record Exchange?

[RevMatt]

I try and get to Vintage Vinyl and Jack's Music (Fords, NJ and Red Bank, NJ respectively) every week and drop some money. I do not want to lose these places. Vintage has the best selection in the entire state.

better than Princeton Record Exchange?

Yes. The best heavy metal selection I have seen anywhere.