Vinyl renaissance helps boost revenues at Golden Discs
Sales surpass €13m as record shop chain takes outlet count up to 16 with more due
Market turns around: Sales of vinyl jump by more than 40 per cent at Golden Discs.
Revenues rose by nearly 9 per cent at Golden Discs last year with a more than 40 per cent rise in sales of vinyl helping to push turnover over the 13 million mark.
The music retailer, which opened four new stores in the Republic last year, reported revenues of €13.2 million for 2018. This compares to €12.1 million for the prior year and €17.9 million in 2016.
Profits edged up from €173,704 to €192,000 last year, the company said.
Golden Discs said sales had been boosted by a sharp jump in purchases of vinyl, which has been undergoing a renaissance.
Vinyl sales hit their highest point in 30 years in the US last year. Closer to home, revenues were up 28 per cent in vinyl in the first quarter compared to the same period a year ago.
“The vinyl renaissance and renewed interest in physical product shows no signs of abating,” said Golden Discs chief executive Stephen Fitzgerald.
Psychology of ownership
“Ownership is an issue for many music fans. Consumers want to browse and shop physical product. Whether for superior sound quality or tangibility, our experience is that consumers want to own their own music,” he added.
Golden Discs, which was established in 1962, said it intended to open two new stores next month, with the possibility of further openings later in the year.
The group has 16 stores at the moment – four of which opened last year – as well as an online business that carries over 15,000 lines.
In addition to selling entertainment products such as CDs, DVDs and vinyl, the company sells related products such as headphones.
Golden Discs said year-to-date trading for 2019 was in line with forecasts.