Quote:
Originally Posted by Northendzone
So let's assume that the vinyl market will grow by 10% or so next year - so 715, 000.
If all the vinyl is bought at sunrise that would work out to about 8,900 per store per year, or 25 per day.
seems hard to imagine you can pay the rent and employee costs selling 25 records per day plus other novelties.
I am assuming that one of the CBc dragons is not backing this
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Sunrise also sells audio CDs, etc. and judging by HMV, people are still buying CDs as their CD shelves are getting cleaned out.
At the end of the day, I don't think a retail store can survive selling new vinyl while paying the equivalent of shopping mall lease rates. New records are difficult because stores have to purchase the inventory and they can no-longer return unsold stock like they could in the 20th century. The profit margins are slim.
I think most of the profit margin is on used vinyl and Calgary has one of the biggest retail bases for that in all of Canada (Recordland has 1.2M used records, etc.). They'll pay $2-5 for a record and turn around and sell it for $20-$30.
It's tough to say where vinyl is going. I think it's definitely riding a bit of a nostalgic revival for those old enough to remember it and it's also riding a hipster wave for those who never experienced it originally in the first place but most will buy a record destroying Crosley and 1 or 2 of their favorites from their teenage years and then forget about it due to ADHD. I noticed that Urban Outfitters scaled back their record section by 50%.