Guitar Center Layoffs

GGJaguar

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I'm sure other big boxers like Sam Ash and Sweetwater are taking note of this.
 

GAD

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I'm sure other big boxers like Sam Ash and Sweetwater are taking note of this.
Sam Ash isn’t much better off from what I’ve seen, though they seem to have embraced Ebay/Reverb in a way that GC has not.

Sweetwater will likely survive, IMO, because they have a fundamentally different business model.
 
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HeyMikey

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I feel sorry for the GC folks and any retail worker. It is a hard way to make a living. I wouldn’t be surprised if this is part of a GC plan to boost their online sales and reduce their physical store footprint.

Covid accelerated online sales 10 years into the future literally overnight, especially for standard production items. Go to any GC and most of their inventory is now generic, non-US production. You don’t need a mega store with a ton of inventory to sell that.

Mall and physical store traffic is way down. That retail overhead must be killing the tighter margins needed to compete with online sellers. I’m just surprised it took them this long to adjust.
 

Brad Little

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Sam Ash isn’t much better off from what I’ve seen, though they seem to have embraced Ebay/Reverb in a way that GC has not
Last I knew it was still a family owned business, so maybe they can make decisions on business practices quicker than GC.
 

twocorgis

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Sam Ash isn’t much better off from what I’ve seen, though they seem to have embraced Ebay/Reverb in a way that GC has not.
I disagree there Gary. I've known the Ash family since I was young, and they're very good people. They treat their employees like family, much like D'Addario does. When you go into either of the Long Island stores, you are greeted by generally cheerful and knowledgeable workers, many of whom have been with the company for a very long time. I can't say that about a single GC here, and it's a testament to the bankruptcy laws in this country that they're even still in business. They've been on life support longer than Sears!

EDIT: I actually misread that originally as "much better" rather than "much better off", but I believe sam Ash to be on much better financial footing as well. Even if their retail outlets don't perform exceptionally well, their Samson parent company (which includes brands I love like Hartke) are in fine shape.
 
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walrus

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I have 3 GC's I can drive to. It will be interesting to see what happens. I wish their employees well.....

walrus
 

Uke

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Sweetwater will likely survive, IMO, because they have a fundamentally different business model.
I think so too, based on my own personal behavior. I've bought several items from Sweetwater during the dark ages of the pandemic. None of these items were guitars however. With one exception, I still have to hold a guitar before I buy a guitar. I'm fortunate to have a good used guitar shop in town, and Tom Jacobs, not far from me, always has an interesting thing or two hanging around. I bought a little Fender pro-junior from Sweetwater with a bit of trepidation; as it turned out there has been no problem. Threre is a Guitar Center about 3 miles from me, and I have nothing against it: it's just that it never has anything of interest (to me) in the store.
 

mavuser

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the supply chain issues are crushing them. As well as Sam Ash brick and mortars. theres no inventory. at least not compared to what they are used to having
 

Westerly Wood

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Given the nonchalance with which GC takes photos of used gear, I have always had to wonder what else was amiss.
Recently saw a guitar on GC online, it had one picture. Of the back of the guitar. Wood was super dark so totally indistinguishable. Might as well taken a photo of concrete. 😂
 
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I only hope that the layoffs include the 3 dorks, in different stores around the country, who didn't bother to send the cases that belonged to used guitars I bought online. And also the local dork who, when one of those cases finally came into the store for me, put it out for sale in the used-case-clearance pile.
 
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DrumBob

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GC is probably trying to change their business model and go more toward online sales in a bigger way.

I'm sorry for the people losing their jobs, but if GC goes under, I'll not shed a single tear. It's been coming for a long time.

Next, we'll see unprofitable stores close. The Totowa, NJ store should be one of them. It's a joke.
 

bobouz

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Guitar Center staff’s lack of knowledge regarding used & vintage pieces has led to many of my finest guitar buying moments - god love ‘em!
 

beecee

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Sorry to hear that as I've had met some great folks at tge Syracuse store.

Retail is tough. I'm the knacker, (in Herriot speak), who takes care of a lot of troubled properties across Upstate. I see way too much of the closings and layoffs.
 

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I have 3 GC's I can drive to. It will be interesting to see what happens. I wish their employees well.....

walrus
And I think that's part of the problem.....they spread too thin. Buying a guitar shouldn't require being a convienience. That's reserved for McDonalds French fries and their 10 min shelf life. During the absolute monetary height of the music industry, the 80's, in the D.C. area, we had our strip mall music stores that were mainly geared for supplying school music programs and otherwise only sold cheap guitars and amps. We had to drive an hour to Chuck Levin's Washington Music Center if you wanted the good stuff. Then...DURING the decline in the music industry, a shift from guitar driven music towards 2 turntables and a microphone, Guitar Center box stores popped up all over the place. I have 1 pretty close to me, plus 3 more that are STILL closer than Chuck Levin's. Then add online shopping. Their downsizing was inevitable as far as I'm concerned. There should really only be 1-2 per major city and surrounding suburbs, not 10-15. If you're about to spend 1,2,3 thousand on an instrument, you should have no problem driving 45 min to buy it. GC, just like any big box store, also put loads of people out of work when small local mom and pop music stores went belly up. I'm not losing any sleep if they close 4 out of every 5 stores. IMO, they never should have been there to begin with. We also don't need a Kohls/Bed Bath and Beyond/Old Navy every 4-5 miles. And we definitely don't need a Home Depot right across the street from a Lowes. It's all just nonsensical greed driven madness.
 

Brad Little

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Slight twist on the demise of Mom and Pop stores, when Sam Ash moved into our area, they bought what was arguably the areas most successful indie music store. This store had started as a very small store in a small strip mall, but by the time it was sold, it was big enough that Sam Ash did not need to do any remodeling. I had taught at the original store, when there were a dozen or so, mostly high end and used guitars, so new the owner. After the sale, he was hired as a sales trainer, and when I ran into him on one of my first visits to Sam Ash, he told me that they had fulfilled his dream, to be a millionaire before he was 40. So Sam Ash got a store with an established clientele and the former owner was happy, on this case, win/win!
 

twocorgis

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If you're about to spend 1,2,3 thousand on an instrument, you should have no problem driving 45 min to buy it.
And I'll add that if you are spending that kind of money, you shouldn't be buying it at Guitar Center at all. None other than Ren Ferguson told me that "Guitar Center isn't where you should be buying a Gibson" when I asked him why there weren't any good ones at my local GC, which has been on life support forever.
 
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