Musicians often regard musical instruments as an extension of their own bodies, but this sense of connection doesn't always suit the online shopping experience.

"Choosing a musical instrument is a very, very personal experience," said Guitar Center CEO Gabe Dalporto. Such things require touching with one's hands, listening with one's ears, and even smelling with one's nose. He mentioned that a guitar that may look attractive on a website might not resonate with a player when they try it out in person.

At the age of 56, Dalporto firmly believes in the necessity of physical stores and regards them as a core pillar for reversing the situation of Guitar Center. This music instrument retailer, which once filed for bankruptcy, is now making a major bet on consumers' demand for an offline shopping experience. It hopes that both beginners and experienced musicians can try out musical instruments in the store and benefit from the professional knowledge of its staff.

The revival of Guitar Center is still in progress, but this individual, CEO, who has training in nuclear engineering and is also a passionate music enthusiast, hopes that this retail store can not only offer the vast inventory found at large supermarkets but also create a sense of community that is typically only found at independent musical instrument retailers. "What inspires me the most about independent shop owners is that they truly understand their customers," he says, "and that's exactly what I hope we can achieve as well."

Picked the wrong novice market.

Guitar Center has only just begun to recover from the lingering effects of a six-year pandemic.

During the pandemic, millions of Americans developed new hobbies to pass the time; some began baking sourdough bread, while others picked up the ukulele or guitar. As lockdown measures led to the closure of physical stores, online sales surged to become the lifeline for Guitar Center. In 2020, its digital sales doubled, but they still accounted for a relatively small portion of its overall business.

In order to keep up with this wave of new enthusiasts, Guitar Center made a decision that, in hindsight, was not wise: they heavily invested in low-priced musical instruments aimed at beginners, at the expense of their core customer base—more serious and professional musicians. By the time sales returned to normal, Guitar Center found themselves holding a wrong mix of products, and the shutdown of Chinese factories caused supply chain disruptions, making it even more difficult to correct this issue.

Dalporto said, 'Because a large number of newcomers have flooded the market, our inventory allocation has indeed been disrupted, and it took us a long time to get it back in order.'

In addition to store closures and overstock, the company also bore the heavy debt incurred from a private equity acquisition in 2014. By the end of 2020, Guitar Center was on the verge of insolvency and applied for protection under Chapter 11 of the U.S. Bankruptcy Code.

Switching back to serious players again.

Even after emerging from bankruptcy protection following the reduction of its debt burden, Guitar Center still finds it difficult to re-establish its market position. Online musical instrument retailer Sweetwater has taken advantage of the situation to snatch market share from more serious music enthusiasts, while mass retailers such as Walmart have attracted beginner guitar players.

Dalporto It's quite clear that Guitar Center needs to shift its focus back to guitar enthusiasts. (He served as a director during the bankruptcy reorganization and took on the role of CEO in 2023.) Dalporto says that out of 10 people who start learning the guitar, 9 stop playing after a year, so catering to these beginners means a very high turnover rate. Retailers have to constantly look for new customers, and even when they do find them, they usually only purchase products from the low-priced guitar inventory of Guitar Center. Dalporto believes that these products take up too much space in the stores. "A beginner doesn't need 200 different guitars to choose from," he jokes. Dalporto's most cherished guitar is a 1964 Fender Stratocaster that was a gift from his father.

During the pandemic, approximately 75% of Guitar Center's product range was aimed at beginners, while 25% was targeted at serious musicians. Today, this ratio has reversed.

This strategy has helped Guitar Center get back on track: the company has achieved sales growth for 10 consecutive quarters. Guitar Center aims to achieve annual revenue of $2.6 billion in 2025, a 4% increase from 2024. In recent years, the business has also benefited from some external factors beyond the company's control, such as the revival of country music driving the sales of acoustic guitars, as well as Taylor Swift encouraging more young women to start learning this instrument.

At the same time, although the overall guitar sales volume has only seen a slight decline, this downward trend has persisted for many years. Therefore, any growth must come at the cost of capturing market share from competitors. During the tenure of Dalporto, Guitar Center increased investment in some relatively new and faster-growing areas, such as DJ equipment, keyboards, drums, and recording studio equipment. The company is also strengthening its used guitar business.

Local store strategies

Guitar Center shares similarities with two other large supermarket chains that are trying to withstand the impact of online competitors: the electronics retailer Best Buy, as well as the book retailers Barnes and Noble. All three companies are striving to make their chain systems more akin to local family-owned businesses.

Dalporto said, "If all you have is Amazon, then you don't have a local music device community, and that's exactly the kind of community we need to become."

Dalporto indicates that he regards the much-praised revitalization efforts of James Daunt towards Barnes and Noble as a replicable model, and he also draws inspiration from independent retailers such as the Chicago Music Exchange (Chicago Music Exchange); he appreciates the latter's selection of products, community atmosphere, and high-level service.

In order to capture this essence, Guitar Center is striving to make its stores a place where both beginners and professionals are willing to stay. The company has launched an open-mic night for local musicians and recently organized a national " Drum Off " drummer competition, in which 2,600 drummers performed at its various stores. It has also lifted the informal ban within the stores on playing " Led Zeppelin 's " Stairway to Heaven ", a song that has always been a favorite among beginners, in order to create a more welcoming environment.

Guitar Center hopes that regardless of the customers' skill levels, the staff can match their enthusiasm for music.

Dalporto said, "I hope to be able to invest more staff in the stores in a profitable manner. Over time, we will be able to provide a better customer experience, which will bring additional revenue."