The future of brick-and-mortar music retail in the UK is looking increasingly uncertain. Over the past few months, several iconic brands such as GAK and Bax Music have shut their doors, closing in March and April respectively.
Just last week, PMT – the UK’s fourth largest music retailer by revenue – went into administration, while family-run Hobgoblin has launched a crowdfunding campaign to try to stay afloat on the high street.
With these long-established music retailers disappearing, what does the future hold for the industry?
YouTuber KDH warns that these closures could lead to a monopoly, where fewer retailers control larger shares of the market. The retailers that survive tend to be those with large online operations and extensive warehouse facilities.
“Physical stores always have higher overheads compared to warehouses that can buy in bulk and ship directly,” KDH explains.
He recalls predicting this trend two months ago when GAK closed and says the warning now feels more relevant than ever. “I remember someone laughed at my comment back then, but every day it’s becoming clearer. We are heading towards a monopoly, which isn’t good for consumers.”
KDH highlights the distribution strategy of Behringer, a brand valued at over $2 billion, which sells affordable synths, guitar pedals, and other music equipment. Behringer designates certain retailers as “Super Partners” who place larger orders and receive lower prices.
For these Super Partners, “prices are more competitive than for anyone buying smaller quantities, so customers tend to buy from them because it’s cheaper.”
This means larger retailers can offer better prices thanks to bulk buying, putting smaller stores at a disadvantage and accelerating their closures.
“As small retailers shut down, and even bigger ones struggle to match online prices, what happens next?” KDH asks. “You end up with just one or two retailers. They might start with low prices, but without competition, they could raise prices later on.”
He predicts this shift won’t happen overnight but could take about 10 years to fully unfold.
“A store like PMT, which has tens of millions in annual turnover, isn’t closing because people don’t want to play music or buy gear. It’s closing because it can’t keep up with online prices.”
