Kenny’s Closes
Kenny’s Music, the musical instrument retail chain established in 2008 by Kenny McWilliams, has announced that it will be closing its doors.
In a statement shared with Music Instrument News, Managing Director Alex Marten confirmed the news, saying:
“Dear Supplier Partner,
I am writing to let you know that regrettably Kenny’s Music (K G Music Limited) has ceased trading, and the Directors intend to place the company into a Creditors’ Voluntary Liquidation shortly.
We have instructed Richard Gardiner of Thomson Cooper as the proposed Liquidator. His team will be in touch with you directly in due course with the formal notices and next steps. Richard can be contacted at:rgardiner@thomsoncooper.com.
Despite our strongest sales ever in recent years, the rapidly rising cost base across both stores and ecommerce, combined with continued pressure on margins, has made it impossible for us to operate sustainably within the traditional music retail model. Continuing to trade would not have been responsible.
Although this chapter is ending, I remain committed to the MI industry and hope to contribute again in future in a way that better reflects the changing needs of musicians and suppliers alike. In the meantime, I will do everything I reasonably can to assist you and the proposed Liquidator through this process.
On behalf of everyone at Kenny’s Music, thank you for your support over the years.
Yours sincerely,
Alex
Reflective thoughts..
The musical instrument retail sector has long been a dynamic blend of artistry and commerce. From local independent stores to major online distributors, the business of selling instruments has been built on passion, personal expertise, and the enduring love of music. Yet in recent years, many retailers have reported increasing pressure on their profit margins — a challenge that goes far beyond normal competition. Understanding why margins are being squeezed, and what that means for the future of the industry, requires examining how changes in manufacturing, consumer behaviour, distribution, and technology are reshaping the market.
One of the most direct reasons margins are tightening is the rising cost of goods. Musical instruments rely heavily on raw materials such as wood, metals, and electronic components — all of which have seen significant global price fluctuations. Post-pandemic supply chain disruptions, increased freight costs, and environmental regulations around timber (such as CITES restrictions on certain tonewoods) have all added costs at the manufacturing level.
These higher costs are often passed down the chain, but retailers rarely have the flexibility to raise prices proportionately. Consumers accustomed to discounts and competitive online pricing resist increases, forcing retailers to absorb more of the cost themselves. This situation is especially challenging for small independent stores that lack the buying power of larger chains or online giants.
The internet has revolutionised how customers shop for instruments. Platforms like Thomann, Sweetwater, Guitar Center, Andertons, and Amazon have set new benchmarks for price, convenience, and selection. While this democratisation of access benefits consumers, it has created an environment of hyper-competition among retailers.
Shoppers can instantly compare prices across multiple websites, pushing retailers to lower prices to stay competitive. In many cases, margins have fallen to near break-even levels on popular items such as entry-level guitars, keyboards, and electronic kits. Independent retailers, who rely on in-store experiences and service, cannot always match the volume-based pricing or logistics of online giants.
This race to the bottom on pricing has eroded traditional margins and placed added pressure on retailers to differentiate through service, education, or exclusive offerings — all of which require investment, further eating into profits.
Music retail is also affected by broader economic and cultural shifts. Rising living costs, housing pressures, and reduced disposable income have changed how consumers spend money on hobbies and leisure. For many households, musical instruments — especially premium ones — are seen as discretionary purchases.
In addition, the digitalisation of music-making has changed buying behaviour. Many younger musicians now use virtual instruments, DAWs (digital audio workstations), and MIDI controllers rather than traditional acoustic instruments. These products tend to be lower-margin electronics that depreciate faster, compared to acoustic guitars or pianos that hold long-term value. Software-based solutions are also often sold directly by developers, cutting retailers out of the loop entirely.
Even when people do buy instruments, the second-hand market (through platforms like Reverb, eBay, and Facebook Marketplace) has become a dominant force. This means fewer new-instrument sales, further pressuring retail margins.
Many retailers have turned to constant discounting and promotional campaigns to maintain sales volume. Events such as Black Friday, seasonal sales, and manufacturer rebate programs have conditioned consumers to expect reduced prices year-round.
While these tactics can temporarily boost turnover, they are unsustainable in the long term. Discounting erodes perceived value and permanently lowers the price ceiling for many products. A customer who buys a drum kit at 20% off once is unlikely to pay full price next time. Retailers are caught in a cycle of chasing volume at the expense of profitability.
This practice is compounded by MAP (Minimum Advertised Price) policies that manufacturers enforce unevenly. Some online sellers undercut or bundle items creatively, creating a perception of better deals and undermining brick-and-mortar stores who adhere strictly to pricing agreements.
Another factor affecting margins is the consolidation of distribution networks. Large manufacturers are increasingly bypassing traditional wholesalers and selling directly to major retailers or consumers. This shift reduces the number of intermediaries, which might seem efficient, but it also centralises market power among fewer, larger players.
When a handful of large online retailers control a significant share of the market, they can negotiate deeper wholesale discounts and exclusive product lines — advantages that small stores cannot access. Independent retailers, in turn, face thinner markups and limited product differentiation.
Some brands have also adopted direct-to-consumer models, selling from their own websites. This trend, while profitable for manufacturers, removes the retailer from the transaction entirely, effectively cutting out a traditional link in the value chain.
Despite these pressures, physical stores remain crucial for many musicians who value the tactile experience of trying instruments before buying. However, maintaining that experience is expensive. Rent, staff, insurance, demo stock, and showroom space all add to overheads.
Many customers now use brick-and-mortar stores as “showrooms”, testing instruments in person before purchasing online at a lower price. This phenomenon, known as showrooming, can be devastating to local retailers. The time and resources invested in providing expert service don’t translate to sales — yet cutting back on service risks losing the core advantage of in-person retail.
Some stores have tried to offset this by offering lessons, workshops, and community events, which help drive engagement but add operational complexity. While these initiatives build loyalty, they rarely replace the margin lost on product sales.
Musical instruments are often high-value items with slow turnover. Retailers must balance the need for variety with the financial strain of carrying inventory. Instruments take up space and capital, and fluctuating demand can leave stores with unsold stock that must eventually be discounted.
For retailers relying on credit to finance inventory, rising interest rates add further pressure. A delayed sale can turn a profitable item into a loss once financing costs and depreciation are accounted for. Managing stock efficiently — especially across multiple product lines and models — has become a delicate balancing act.
While margin compression is a serious concern, it also presents an opportunity for innovation. Successful retailers are responding in several ways:
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Value-added services: Providing setup, repair, customisation, and education helps differentiate stores and generate additional revenue streams.
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Exclusive or local partnerships: Collaborating with boutique manufacturers or offering store-branded instruments can bypass direct online competition.
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Hybrid models: Combining physical showrooms with strong online stores gives customers the best of both worlds — experience and convenience.
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Community focus: Hosting workshops, clinics, and live sessions strengthens loyalty and reinforces the store’s role as a cultural hub, not just a shop.
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Sustainable practices: Transparency in sourcing and eco-friendly initiatives appeal to modern consumers and may justify premium pricing.
The conclusion therefore is the tightening of profit margins in the musical instrument retail sector is not a temporary fluctuation but the result of deep structural shifts in global trade, consumer behaviour, and technology. Rising costs, online competition, and changing cultural priorities are transforming how people buy and value instruments.
Retailers who rely solely on traditional sales models are finding it increasingly difficult to sustain healthy margins. Yet, those who adapt — by building experiences, fostering community, and offering expertise that cannot be digitised — still have a vital place in the modern music ecosystem. The challenge ahead is not simply to sell instruments, but to sell inspiration and experiences — and to do so in a way that keeps the rhythm of retail alive for generations to come.
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Source: musicinstrumentnews.co.uk
