Why independent record stores are struggling despite the vinyl revival

Despite the growing demand for vinyl, many independent music stores across Europe are closing due to rising rent prices and the impact of tourism.

Across Europe, a troubling trend is emerging: more and more beloved music and vinyl shops are closing their doors for good.
Despite there being a resurgence in vinyl sales – driven largely by a craving for physical media and nostalgic experiences in an increasingly digital world – many independent record and music stores are facing an uphill battle against rising rent prices and the gentrification of local communities, often spurred by tourism.
Take Tattoo Records for example, located in Piazzetta Nilo in Naples, Italy. After 41 years of dedicated service, owner Enzo Pone recently announced its closure this week: “Piazzetta Nilo, in recent years has become a reality that is not so easy to live professionally for those who tend to sell a product other than a pizza or a smelly cuoppo of badly defrosted fish.”
He added, on a statement posted to social media: “You make less money with jazz than with pizza.”
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Elsewhere, a staple in the revived Brussels vinyl scene Dust Dealers, shut up shop last month. And in Spain, the historic Casa Beethoven, which began trading on Las Ramblas in Barcelona in 1880 and today has a catalogue of more than 70,000 music scores, fears it could suffer the same fate.
“These type of shops are like the Titanic, slowly sinking. The sinking isn’t fast for us because we are open most hours and we are located in Las Ramblas where many people walk by, this allows us to survive,” says Jaume Doncos, co-owner of Casa Beethoven.
He adds: “I think it will depend on when we decide to retire. We see the thinking and we know the final is inevitable.”
But surprisingly, while many of these shops are vulnerable to closure, the vinyl market is flourishing globally. In the United States, vinyl sales this year increased by 6.2%, and in the UK, the Official Charts Company and BPI (British Phonographic Industry) detail a 3.2% increase in physical music sales in the first half of 2024, with 8,044,760 units sold in the UK. This marks the first time figures have risen since the streaming boom that began in 2004.
In France, physical media represents a small but significant quarter of recorded music sales. The SNEP (Syndicat national de l’édition phonographique) stated in its 2023 annual report that 24% of the €815 million generated last year came from CDs and vinyl, in almost equal shares: €97 million for the former and €94 million for the latter – which was a +5.5% increase compared to 2022. 
This data suggests a paradox and raises several questions: Can the rise in vinyl sales compensate for the economic pressures that independent record stores face? And are consumers shifting their purchasing habits online or to larger retailers, bypassing local shops in favour of convenience?
Jeffrey Smith, the vice president of marketing at Discogs, the largest online vinyl retailer, remains optimistic: “Independent record stores remain the backbone of vinyl culture. We want to set the record straight: Vinyl is still in demand, indie stores are thriving, and the market is growing.”