Guitar stores are closing at an alarming rate. Sam Ash shut down all of its locations last year. Music Trades reports that the music instrument retail market shrank from $7.5 billion in 2023 to $7.3 billion in 2024. Long-standing British music institutions GAK and PMT closed their shutters within weeks of each other, and Bax Music in the Netherlands and Belgium has also called it a day.
Now, Hobgoblin Music – a family-run business founded in 1976, specializing in acoustic and folk instruments and operating nine shops across the UK – is hoping to defeat the odds and survive with an out-of-the-box crowdfunding campaign.
They're seeking to raise $256K (£190K) in exchange for a 9.5 per cent equity stake in their business.
“For all retailers, the challenges we have in common are rising costs and online competition, with added complications arising from our changed relationship with the EU, and, of course, the losses most of us made during the pandemic,” shares executive director Nicola Rain, in an exclusive interview with Guitar World.
“Our suppliers are all competing with online competition too, so it’s really hard to make a decent profit on the big, well-known brands,” says Rain. “Rates are coming back up, rents very rarely go down, wage bills are going up, banks aren’t keen to lend, and suppliers are in straitened circumstances as well, and are keeping a tight hold on credit limits and payment terms.”
We do get a lot of people we recognize coming in – Sir Paul McCartney comes into our London branch now and again, and always stays for a chat with the staff
“On top of that, super-cheap online drop-shipping companies have been marketing very aggressively. As instrument dealers, we know you are unlikely to get a well set up, good-quality instrument straight out of a shipping crate, but the prices are very appealing to customers. This year does seem to have hit a perfect storm for all of these issues for the guitar industry in particular.”
I recently popped into Hobgoblin Music’s outlet in Brighton, UK, and what transpired was an interesting conversation with one of the very enthusiastic staff members about Wizz Jones and Susan Alcorn.
Sure, you can have a discussion about niche folk guitarists on Reddit, but the intimacy of in-person conversations – and actually holding a guitar in your hands and experiencing how it sounds and feels – offers an extra-special something that not only helps you grow as a musician, but also fulfils the human need for unadulterated connection.
And, according to Rain, some noteworthy names agree with this sentiment. “We do get a lot of people we recognize coming in,” she says. “Sir Paul McCartney comes into our London branch now and again, and always stays for a chat with the staff there – our favourite type of customer.
“He’s bought a Blueridge guitar from us, which makes occasional appearances in photos and videos online, as well as a mandolin made by Paul Hathway, and various other instruments.”
These moments of connection are what make brick-and-mortar music stores special – and frankly, they are their best chance of survival in a David vs Goliath battle.
“After 35 years of having internet shopping as an option, most customers who still come in and support music shops are making the choice to do so, because they get something worthwhile from the experience,” says Rain.
Most customers who still come in and support music shops are making the choice to do so, because they get something worthwhile from the experience
“Shops that understand this and make sure they are offering the best possible service and advice, and ensuring every customer has a good experience in the shop, have a better chance of holding on.”
Leaning into the in-store experience – whether that’s the service itself or organizing events such as master classes, clinics, and meet-and-greets – is key to weathering the storm, as is specializing in more premium, and yes, perhaps even off-kilter and rare instruments and brands that customers wouldn’t necessarily come across online.
As Guitar Center CEO Gabe Dalporto insisted last year in an interview with YouTuber Phillip McKnight, “On Amazon – when you think about what we can uniquely provide for the musician – low-end, cheap, toy-like instruments… that’s not where we’re gonna win, right? The premium product is where people are gonna take the time and care, and want to experience it, and that’s why that’s important to us.”
Seeing other stores tumbling like a house of cards inspired Rain to put her thinking cap on and urgently find a more innovative way for the business to chart a new course. Her conclusion is that its better to act before its too late – and that the answer lies in the community that Hobgoblin Music has fostered over the past couple of decades.
“I was inspired to try a crowd-investment round after I saw another company had done the same thing and been successful with it,” she divulges. “I had a chat with the owner, and the more I thought about it, the more I liked the idea.
“Our customers have built us up over the last 49 years, sharing their expertise with us, and coming back again and again to support us. We really liked the idea of sharing the future of our business with them.
“An injection of cash now, while we are organized and running well, would be a huge boost for the business, and would mean we can do what we’re doing now but much better.”
Putting Hobgoblin Music’s crowdfunding campaign aside, Rain has a few thoughts on how musicians and music enthusiasts can ensure that their local music store can be enjoyed for decades to come, wherever they may be in the world.
“Turning up is the main thing, of course. Coming into the shop, even if you’re not buying, keeps the place busy and energetic. The instruments want to be played!” she asserts. “Secondly, if you love your local music shop, let people know. Leave a good review, not just on Google, but on Yell, Trustpilot – anywhere you can think of.
A lot of people will come into our shops and find something they’ve never even heard of – and a lot of the time they walk out with it the same day
“And thirdly, whenever possible, pay the extra and buy your accessories locally. You’ll get a nice experience, you might see something new in the shop that you’ve not seen before, and you’ll be supporting a business you care about.”
After all, brick-and-mortar music stores offer a playground for experimentation and discovery, including the chance to try out an instrument or model you may never have imagined buying.
As Rain aptly puts it, “Because we stock a lot of folk instruments as well as guitars, a lot of people will come into our shops and find something they’ve never even heard of – and a lot of the time they walk out with it the same day.
“If you can’t get to a music shop, you can only go on what you’ve read or been told about what to buy, and you’re going to miss out on a world of opportunity.”
To learn more about Hobgoblin Music’s crowdfunding campaign, visit Crowdcube.
You must confirm your public display name before commenting
Please logout and then login again, you will then be prompted to enter your display name.
