While some worry that the Internet is pushing record stores out of business, Chicago's Dusty Groove America found the Web to have quite the opposite effect. The retailer went from Web portal to brick-and-mortar storefront during the course of five years.

Launched as an online mail-order destination in 1996 for fans of avant-jazz, underground hip-hop and world music, Dusty Groove was such a local hit that owner Rick Wojcik opened a walk-up window for pickups. Continued traffic at the window eventually forced Wojcik to open a full-fledged store in 2001, despite the fact that Dusty Groove still does more than 90% of its business online.

We had that [window] because we used to only be open two days per week," Wojcik says. "But we have people working through the middle of the night here, and decided to just keep the store open longer. That's essentially eliminated the need today for the take-out window."

Wojcik reports that of the 10% of customers who reside in Chicago, half of them walk in the door having already placed a hold on an item online. "So many of the brick-and-mortar purchases are informed by the Web site on a daily basis," Wojcik says. "If we put up a lot of product on a Tuesday night, the store will be really busy on Wednesday."

And the heavily curated store—Wojcik says Dusty Groove stocks about 10,000 titles at any given time—is now taking matters further into its own hands. Seeing major labels trim the staffs and output of reissue divisions, Dusty Groove launched its own label in conjunction with Universal, Wojcik says. This summer, the jazz, funk and soul titles will be available nationally via Infinity Entertainment Group.
—Todd Martens

LESS IS MORE
Other Music (New York)

When Other Music became one of the first brick-and-mortar indies to open an online MP3 digital download store, it decided to stay true to the premise of its logo instead of taking advantage of the Internet's virtual shelf space. "iTunes has a ton of stuff and eMusic is indie-focused," says Josh Madell, co-owner of New York-based Other Music. "but we are cherry-picking titles. Our online store is curated the way a local indie shop is." When Tower's lower Manhattan store operated across the street, the indie store excelled at carrying music that the superstore didn't. So far, Other Music's site sells about 5,000 albums, letting it feature left-of-center titles that might not get coverage on the bigger sites.
—Ed Christman

A VINYL NICHE
Criminal Records (Atlanta)

Many indie sellers are reporting an increase in a niche product that can't easily be uploaded. In Atlanta, Criminal Records owner Eric Levin goes one better. "Turntables used to be a nice item for us," he says," but now we are stocking turntables dozens at a time and we keep them upfront." So far this year, vinyl music sales have increased 20% at Criminal. It also sells other product lines, including magazines, comic books and coffee. "It's a very exciting time to be a niche retailer," Levin says, "because there is a lot of money in the niche
—Ed Christman

RETRO REFURBISHING
Fingerprints (Long Beach, Calif.)

If you want to spend $300-$500 on a decent new automatic turntable nowadays, be prepared for a shock. You can't, at least not easily. Most electronics superstores carry cheap automatic turntables for about $120, or non-auto DJ turntables. But Fingerprints has solved the dilemma. A former employee scavenges turntables from thrift stores and eBay and refurbishes them with abundantly available generic needles. "We can keep turntables priced for below $100 bucks, which is a good entry level for someone trying to get started in vinyl," Fingerprints owner Rand Foster says.
—Ed Christman

ALL AGES
Grimey's New & Preloved Music (Nashville)

"There is no reason for kids to come to record stores anymore, so we try to give them compelling reasons to come," Grimey's co-owner Doyle Davis says. The store specializes in indie music and has a big vinyl presence. In fact, it has a vinyl store-within-a-store. In-store performances are frequently scheduled in—and below—the space as well. In the building's basement, co-owner Mike Grimey runs a club heavy on Americana acts, many of which are carried up above. "The good thing is, if kids can't go to the club we do a lot of in-stores, so they can see bands live here," Davis says.
—Ed Christman