Retail industry analysts have been speculating on the future of Sam Ash Music in the wake of its acquisition by Mexican retailer, Gonher Music Center.
In March, it was widely reported that Sam Ash would be closing 18 branches nationwide – including its flagship New York store – as it continued to battle the online gear boom.
A few months later, Sam Ash then announced it would be closing down all its stores, and shortly after confirmed it had filed for bankruptcy. At the time, the retailer was said to be evaluating the possibility of selling its e-commerce operations and related intellectual property.
Now, following an asset auction, Retail Dive reports that Gonher Music Center has emerged as the court-approved buyer – having lodged an offer of $15.2 million to secure a selection of Sam Ash’s wholesale and online assets.
Sam Ash’s Marketing Manager Ben Ash – a descendent of the firm’s founder and namesake – discussed the circumstances surrounding the retail chain’s decline in the July issue of Music Inc Magazine, and revealed how changing buying habits and the proliferation of online shopping alternatives had prompted the closures and everything that followed.
“Unfortunately, despite the sentiment that instruments and pro-audio gear are dependent on feel and sound, our business model was not immune to this alteration in shopping habits,” he says.
“Perhaps we could have been more proactive in closing a few store locations that were not as profitable as we needed them to be, but from our perspective, we always viewed music stores as having an important role in the customer journey.”
As Ash explains, the impacts of Covid, brands establishing direct-to-consumer sales strategies, and the expansion of product lines meant Sam Ash and its stock struggled to compete with digital outlets.
However, Ash was keen to play-up the future of Sam Ash, declaring: “Our hope is to have the Sam Ash Music legacy continue, and we’re exploring all possible options to achieve this.”
It now seems likely this will be achieved through a renewed digital retail strategy, bolstered by the backing of Gonher. Indeed, Sam Ash did attempt to improve and shake-up its own digital strategy prior to its store closures and bankruptcy filing, and that’s something that could continue in the coming years.
Via Retail Dive, CAD Management music consultant Clayton Durant hypothesized the future for Sam Ash could be bright.
“If Gonher successfully acquires Sam Ash’s intellectual property and e-commerce assets,” he said.
“I foresee a completely revamped online strategy for Sam Ash, supported by Gonher Music Center, leading to a revival in 3-4 years that puts them toe to toe with Sweetwater, if the online experience is managed right.”
To that end, Retail Dive suggested it could also compete with Guitar Center – another retailer who has managed to balance its 300 store locations with a prolific online business.
It’s still early days, but with Gonher's $15.2 million purchase completed, Ben Ash's hope to “have the Sam Ash Music legacy continue” could well become a reality – at least, online – in the not-too-distant future.
Keep your eyes peeled on Sam Ash's website for future updates.
[Note – the intro to this story was updated to make it clear that the comments in the headline were not made by Ben Ash]
