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Quarterly retail sales data.

Article Excerpt
From Wal-Mart to automobile showrooms and even music stores, consumers boosted their spending during the third quarter as federal tax relief raised disposable incomes. The headlines may not be rife with positive news; however, lower federal income tax withholding rates coupled with tax refund checks and the home refinancing frenzy have lifted consumer buying power. For the three-month period ending September 30, music stores responding to The Music Trades third-quarter retail survey reported that sales advanced 2.1%. "We definitely saw the tax rebate helping in August, with people using it for shopping," said a retailer from Los Angeles. Another dealer offered, "As we head toward Christmas, there seems to be some momentum, but other than that it's hard to forecast."

Sales of school music products rebounded after two years of sliding performance with a 3.3% gain for the quarter. Nationwide, dealers reported positive results during the all-important fall rental season that coincided with the gathering of data for this third-quarter sales survey. These positive results are especially noteworthy considering the added competition from retail powerhouses like Wal-Mart and eBay as well the considerable purchasing constraints in place at all public schools.

Lackluster sales figures for fretted instruments mask a growing consumer interest in the industry's number one selling product. "The guitar is unquestionably king," noted a dealer from Florida. "But the incredible quality of entry-level instruments is taking a toll on our mid to high-end electric and acoustic guitars. Our dollars are flat but we pumped out about 10% more units this last quarter." Dealers report that similar trends are having a negative impact on instrument amplifier sales as feature-laden low-priced models are eroding sales of mid-priced units.

Percussion departments, once an after-thought at many stores, are driving strong results for stores across the...