Who's Selling You Your Next CD?

It has been tough for record stores, as wholesalers like Best Buy or Target take the lead. According to Almighty Institute of Music Retail, a research group, 800 independent record stores have closed since 2003. The Internet has also been replacing these stores, which at one time were the only place to find obscure records. Wholesalers like Target can offer CDs for cheaper prices, and allow the public to shop for CDs while shopping for other house items. What is better than saving time and money? Unlike smaller stores, wholesalers can afford to sell the latest releases at a loss, or at prices that indie labels pay their wholesale distributors. Catherine Andrews of CNN claims that funding is the major difference blocking out small record stores. Not only can Target or Best Buy offer cheaper prices, but they can also afford elaborate advertisements to promote their products.

There is one main thing missing at these wholesale stores though- the wide range of music available. If the song is not played multiple times on the radio, then you probably will not find it at a wholesaler like Target. Eric Levin, owner of the independent store Criminal Records, is counting partly on this fact to survive as an independent record storeowner. He sees this era as a wakeup call for independent record stores to really connect with their customers. He believes indie record stores will survive as long as the stores are inviting, and fun places to socialize with other music lovers. Several smaller record stores have performances in their stores, something that is not found at large retailers. Levin’s plan is to represent the community with each person he hires. All of his employees are either in bands or some form of artist.

Russ Solomon, with the help of his loyal customers, is hoping to also bring attention back to record stores, or at least back to small record stores. Solomon founded Tower Records in 1941, and saw its demise when the chain was forced to close all of its stores in December 2006. The chain was sold to a liquidating company, and all 89 stores were closed in the U.S. The only remains are in foreign countries and online. Solomon’s new plans are to stay small and cater to the customer. He wants to bring back the salespeople who could tell customers about all of the latest releases, or could recommend new artists. His new store will be Resurrection Records, which he plans to open in April. The store should provide nostalgia for old customers, as the new store will open in the old Tower building on Broadway in Sacramento. Customer relationships will be key here, and by staying small, Solomon feels that the stores can quickly react to the latest music trends, something that Target or Best Buy has difficulty doing.

Although it seems unfeasible for larger record chains to survive, perhaps the smaller record stores do have a chance. It is hard for me to see a time when there will not be a market for vinyl, and this is generally a product that most people seem to like to browse through in person. If performances keep up at small stores, this could also increase CD sales for the bands that perform. If fans come out to see the band, then it is more convenient for fans to buy the band’s CD from the store. Customers may also realize that the increased prices at indie record stores are worth it for the environment and knowledgeable salespeople.