Tower Records Back From The Dead?
from the could-happen dept
Back in March we noted that someone had bought the Tower Records brand for $4.2 million after the company had liquidated its business. We wondered what the new owners would do with the brand — even wondering if they might try to set up shop somewhere offshore and offer an AllofMp3.com-style service under the powerful and recognizable Tower Records brand. Instead, it sounds like the folks behind the new Tower Records are looking to… well… do the same thing as the old Tower Records, including potentially opening up brick-and-mortar stores. Of course, if they simply turn around and open stores similar to the old Tower Records stores, they could be in trouble. It’s tough to be just a music retailer these days, since almost all of the competition simply uses music as a loss leader to sell something else. That doesn’t mean there aren’t creative new opportunities for record stores, though. In the past, we’ve seen some independent record stores embrace the changing marketplace, trying to become more of a destination lounge/hangout/club that also happens to sell some music. Still, the new owners may find that they have an uphill battle. The company that bought the brand has a big business selling hard-to-find music via Amazon, but according to the article, also has a huge number of complaints concerning bad service. The company admits this is an issue that it’s trying to clean up, but it certainly won’t endear many people to the new Tower Records if it comes with dreadful service — online or off.
Comments on “Tower Records Back From The Dead?”
true
I buy online for convince rather than dealing with store hours. Its 4am and I just heard a kick ass song on the radio on the way home from the bar.. But music store is closed am I going to wait till the next day..Most likely forgetting the song at the point or go home and download it. I am huge fan of online shopping and will even consider full prices especially if iTunes can ditch the DRM like they have been talking about.
Why would someone purchase the ailing brand if they weren’t gonna do something new with it? The old Tower already proved that music retail model doesn’t work anymore. Why do you need to prove it again???
Music is overrated.
I really believe that music ought to be attached to other successes. Music should not be sold as part of its own market. As the Techdirt article series suggests, sales should be emphasized in the area of concerts, band paraphanelia, and other scarce goods. Music (in its physical form) does not yield good profits anymore. I’m sure there are people out there who can provide contrary evidence, but generally speaking I’m unconvinced any CD-selling business can succeed on CD sales alone.
someone had money to burn
I think anything other than online downloads is a failed business plan. Brick and mortar cd record stores are history.
Three letters...
AT&T
It’s a brand play. Starting a new retail business with an unknown name is a tough task. If you have regional or national ambitions, spending 4.5MM for a known brand is cheap. Renovating or reinvigorating tarnished brands is a well-travled path too.
Wow, this is like the last story I ever expected to read (and $4.2M?!). I used to work at Tower back when I live in La Jolla, and although the music selection was better than all the other music retailers (Wherehouse, Music Plus, etc…), it still had a lousy selection. They’d have to sell used CD’s and offer other services such as getting music on your iPod, and be able to sell every digital title that exists (not a crappy brick ‘n’ mortar selection), maybe digitizing your cd’s on the spot…I don’t know, basically offer more services than products. In any case, can’t see how they can make tons of money with all of the encrypted file-sharing apps popping up (such as http://www.gigatribe.com or Microsoft’s EFS (Encrypted File System) or Freenet)
The “Tower” phenomenon is not difficult at all to replicate:
Stay open till Midnight 365 days a year.
Carry quirky stuff that no one else will touch.
Cater to marginal groups and individual customers.
The good Tower stores actually paid attention to what regular customers bought and anticipated their desires. What makes a Barnes & Noble or Borders suck is that they push the latest best sellers and crap, and their inventories do not evolve with the interests of their clients. They are also afraid of the marginal things. They hide the porn, and don’t carry the more controversial stuff.
The Tower stores had been out of the control of the founding Solomons for years, so it wasn’t dependent upon any specific owner.
The “Tower” phenomenon is not difficult at all to replicate:
Stay open till Midnight 365 days a year.
Carry quirky stuff that no one else will touch.
Cater to marginal groups and individual customers.
The good Tower stores actually paid attention to what regular customers bought and anticipated their desires. What makes a Barnes & Noble or Borders suck is that they push the latest best sellers and crap, and their inventories do not evolve with the interests of their clients. They are also afraid of the marginal things. They hide the porn, and don’t carry the more controversial stuff.
The Tower stores had been out of the control of the founding Solomons for years, so it wasn’t dependent upon any specific owner.
Tower Records
I worked at the famous Tower Records and Video on the sunset strip in west hollywood till the day it closed on dec 22. like everyone has been saying it is the end of an era. a sad end. we had many customers tell us they were sad and angry that tower was going to go. we too were and some still are very angry, bad upper mangement was the problem. many of us employees took out our anger and fustration on the great american (nothing great or american about that company) we gave up our customer service skills and choose not to help anyone (except our faithful regulars which we loved and much as they loved us) we were especially angry with the customers we referred to as vulchers who were huvering just waiting for the opportunity to pounce on us and we were treated like shit by these people. they didnt care that we lost our jobs and health benefits. i wish i could have saved tower myself and kept it open (of course making a lot of changes for the better) but i couldnt, and i thing that whoever bought the tower name opening tower again is not a good idea, it could NEVER be the same no matter what they did, it just could not ever hold up to what tower was.
R.I.P. Tower stores 131 & 132
Shawn R