A report by market research firm IBISWorld Ltd has valued the UK MI retail industry at £382.6m, with compound annual growth of 1.7 per cent predicted over the next five years taking industry revenue to £415.4m by 2020.
The report, titled Musical Instrument Retailers in the UK Industry Report, estimates that industry revenue for 2014-2015 will increase at a compound rate of 1.2 per cent to reach £382.6m. It also estimates that overall profit for the UK MI retail market will reach £15.3m for the year.
For many, the report will serve as appositive sign that things are picking up, although it does warn that competition from other leisure/hobby industries will resists significant future growth.
According to the firm, economic conditions have improved over the past two years, which will lead to increased retail activity due to rising disposable income and higher consumer confidence.
Unsurprisingly, the prominence of ecommerce is set to continue, with online consumer expenditure having increased by 14.2 per cent over the past five years. As such, the report suggests that MI dealers who can afford to invest more heavily in multi-channel retailing should do so. It then warns that those that can’t could be forced out of business.
For more information on the report, visit the IBISWorld Ltd website here.
All facts and figures featured here are published courtesy of IBISWorld Ltd.
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