Gear4music hits the top note during nationwide lockdown
MUSICAL INSTRUMENTS retailer Gear4music has reported “exceptionally strong” trading during the lockdown period and said it is financially stronger and better placed than ever to make the most of future growth opportunities.
The York-based firm, which is the UK’s biggest online retailer of musical instruments and music equipment, has seen sales shoot up since the Covid-19 lockdown started as more people take up playing an instrument to keep themselves occupied.
Andrew Wass, Gear4music’s chief executive, said: “With an increasing number of people throughout the Covid-19 lockdown recognising the benefits that playing, creating and recording music can bring, we have seen a significant increase in demand during this exceptional period.
“Positive sales trends with improved margins have continued into June, and we have also incurred lower marketing costs than we would typically expect.
“The improvements we have made during 2020, and the exceptionally strong trading we have experienced during the lockdown period, mean we are financially stronger and better placed than ever to make the most of future growth opportunities within our market.”
He said the group has seen a shift in what people are buying since the lockdown started.
“In the current circumstances nobody is doing gigs in pubs at the minute,” he said.
“We did see a drop-off in those kinds of products, but that has been more than made up in other areas.
“Podcasting has been huge. People are buying some pretty serious podcasting set-ups, some very professional set-ups. They are spending thousands
of pounds on podcasting equipment.
“It’s a whole world. People are buying specialist microphones that are designed specifically for podcasting. You can get podcasting kits. It’s all the equipment you need to get up and running and start podcasting.”
That said, traditional instruments
are also proving popular with customers during the lockdown as people seek ways to ease the boredom and deal with the stress of being cooped up at home.
“Pianos and violins are also doing very well,” said Mr Wass.
People are looking for ways to stay busy. Instruments have done very well across a lot of product categories.
“Sadly, we are one of the only outlets people can actually buy from with a lot of the shops having been closed so we have been very busy.”
He was speaking as the group announced a strong return to profitability in the year to March 31.
Revenue rose 9 per cent on a 12-month basis and active customer numbers were up 11 per cent to 807,000. The group reported exceptionally strong trading in April and May and said it is confident of further profit improvement in 2021.
Gross profit rose 16 per cent to £31m.
Mr Wass said: “As a result of the efforts across our team and the excellent commercial and operational progress we have made over the past 12 months, I am pleased to report that profits for the year are ahead of the board’s expectations.”