Retail music strategy: licensing, playlists and systems for retail stores

Why music matters in retail stores

When a customer walks into your store they're going to notice a couple of things: what you're selling, and the music you're playing. Your retail store's music should match your brand so visitors know exactly what you're about.

A solid playlist also creates a familiar atmosphere and appeals to visitors. When it comes to building your brand identity, not only do your playlists give an idea of who you are, but they also affect behavior. A slower tempo encourages longer browsing and contemplation, while faster music encourages more movement.

Genres matter, too. While a fashion store might lean into something modern and well-known, a grocery or big-box store requires something unobtrusive with wide appeal. On the other end of the spectrum, a specialty store can afford to play more niche tracks.

Whatever you decide to play in your retail shop, it should be on-brand across all of your locations. Customers should recognize your style and trust your brand.

Where retailers go wrong with playing music

There's more to playing music in a retail store than choosing a few tracks and pressing play. Common pitfalls include:

• Playing random playlists: research found that stores playing on-brand music saw sales increase by 37% compared to random playlists.

• Volume issues: although playing your favorite tracks loudly is tempting, research found a 6% greater sales revenue when playing brand-fit music at the right volume compared to music that was too loud or intense. Music should be audible but don't let it drown out conversation.

• Playing music with explicit lyrics: retail stores are open during the day, so parents may bring their kids inside. Don't risk offending them – better to err on the safe side and filter out inappropriate content.

• Licensing gaps: playing unlicensed music can leave you open to lawsuits and fines, and the musicians whose music you're playing won't get royalties.

Music licensing for retail stores: what you actually need to know

Playing music in a retail store counts as a public performance, which means it follows different rules to personal music streaming services. Playing Spotify in your business is against the service's terms and conditions and you could face account deletion or even legal action.

Music licensing for business varies country to country, and you can read an in-depth guide to the public performance license in our dedicated article. Business streaming services such as Soundtrack cover licensed music for retail, including the public performance license in supported markets, but outside the US and Canada, you'll need to contact a performing rights organization (PRO) to get one. 

These bodies collect license fees from businesses, and most countries have several. PROs do enforce, and as they can hear music from the street, shops are an easy target, so check before playing.

What a music license for retail store covers

A public performance license may cover the following use cases:

• Background music played through speakers in customer-facing areas

• Music played in staff-only areas (especially if customers might be able to hear it)

• Recorded music played at events

• On-hold music

However, exceptions may include live covers of songs, music used in adverts and internal corporate videos, your own remixes and karaoke.

DIY licensing vs using a business music service

Handling your own licensing through PROs is doable, but it's complex. You have to consider the separate types of license you need – the ones that relate to the track itself and the ones that relate to the way you play it. In addition, different artists are covered by different PROs.

Handling your own licensing can be confusing. Furthermore, you take on the responsibility of renewing your licensing and the possible financial and legal risks if you get it wrong.

Using a compliant in-store retail music solution simplifies the process. In some countries, a business music provider covers all of the licensing for their music, and you don't need to deal with PROs at all. In others, you already have publishing and recording rights in place and only need to handle the public performance license.

With a dedicated retail music service, pricing is predictable – if they include licensing, it should feature in the subscription fee. You also have centralized control over your licenses, so you can check with the service to ensure all branches of your business are covered.

Although a retail music service handles many of the necessary licensing requirements, you should confirm the following before signing up:

• Are all the necessary licenses for background music included or are there any that you need to organize yourself? Even with a business music service, in some markets, the PRO relationship and public performance license are your responsibility.

• Are there any PROs the service doesn't cover?

• Does it cover all of your uses? If you have needs beyond background music, you may require additional licenses.

Multi-location and franchise considerations

The centralized governance that a business music streaming service provides is invaluable – in multiple locations, music licensing goes from being a piece of admin to a compliance risk. The more sites you have, the more risk of mistakes. 

But using a single retail music subscription can help you by keeping licensing centralized – you can oversee what's licensed and where it's playing. 

This centralized control also protects you in case of audits – streaming services show what is playing and where, and if someone checks your records, they can see you've paid for the subscription that covers your licensing.

However, when expanding into new markets, check which licensing your retail music provider covers.

Retail playlist strategy: how to curate music that fits your brand and customers

Your music curation strategy for your retail environment starts with defining your brand's values, audience and price point and using these to inform the in-store mood. For example, if 'family friendly' is one of your values, then it's important your customers feel welcome, no matter their age – so play welcoming music without explicit lyrics. Or if you're running a retail operation in the UK, consider what other British retailers are actually playing.

Music guardrails, or guidelines for the genres, instruments and energy range you want to include in your playlists, can help you select background music for your retail store. This gives you a brand sound that is broad enough to play around with (and avoid staff fatigue), but limited enough to align with your store's identity. It's particularly useful if there's more than one person building playlists, or if you intend to outsource your playlist-building.

Within your music guardrails, provide guidance on what to play during peak hours, lull periods, opening and closing. Consider the different seasons, campaigns, launches and promotions, too. The obvious seasonal music is Christmas, but other times of year matter too – why not build an upbeat, sunny playlist for the summer, or include a selection of love songs around Valentine's Day? However, avoid overdoing it – not everyone likes holiday music, and it's better to sprinkle it in sparingly than to feel like your store is part of a Hallmark movie.

Playlist types that work well in retail

The best retail music playlists are on-brand and consistent, and they adapt to context. Use your music guardrails to create a core brand playlist – when in doubt, run this playlist in the background. It should include enough tracks to avoid repeats during open hours, but be limited enough in scope that no song is out of place. Use it as a reference for your other playlists.

With your core brand playlist and music guardrails in mind, select specific tracks that fit different dayparts and build playlists around them so you have on-brand music available at all times. For example, calm, easy-listening tracks work well in the morning to ease your customers and staff into the day. You can build volume and tempo as the day goes on and footfall increases. At closing time, let the music wind down, encouraging customers to wrap things up and give your staff a reset before they handle closing duties.

Creating specific background music playlists for events or peak trading periods signals that something exciting is happening, whether that's a product launch, late-night opening, or special occasion. These playlists can be more energetic and lean into a specific genre. Although they should be a clear departure from your everyday playlists, customers should still recognize them as specifically yours.

Stores in different regions and countries should also reflect their local background without losing brand consistency. For example, if you have a store in France and a store in Spain, make sure your music includes tracks in the local language, a few local artists and, if applicable, genres specific to the region. Locality should be a layer on top of core identity – a good retail music playlist is simultaneously on-brand and in keeping with the region.

Where playlists come from: curated, AI, custom and imports

There are several ways to find or create a retail playlist – you can use ready-made ones from a music service, try an AI station, make your own, or import an existing one. How you do it depends on your brand's needs, and you might even use a combination of strategies.

Many retail music playlist services come with pre-loaded playlists and stations. These are the simplest option, as all it requires is scheduling or pressing play. It also offers consistent quality, as you can trust that the service that put it together had retail stores in mind. However, there are drawbacks – although they are tailored to retail brands, they're not tailored to your brand specifically, so there's a trade-off in personalization.

One way of adding some personality is with an AI station, a feature that many retail music streaming services include. These allow you to create an entire retail music radio by typing a prompt (e.g., smooth jazz playlist for a high-end fashion store). This is especially useful if you want curation quickly, as it means simply tailoring a prompt for your needs. You should check through the playlist before playing to make sure all the tracks are on brand, licensed for your needs and free from explicit lyrics.

The most precise playlists are custom ones – they allow you to compile a playlist that's uniquely yours. However, it is a more involved process and will cost more time and money – either you spend hours curating it, or spend money hiring an expert to do it for you. You may want to reserve these playlists for specific occasions or flagship locations. 

Many retailers have playlists they already use – perhaps a staff member's Spotify playlist or a list of tracks from a previous music provider. Importing an existing playlist from another music service to a business platform saves duplicating work. But it involves risk – a personal playlist isn't necessarily optimized for retail music streaming. It isn't subject to your music guardrails, and it might need adapting for dayparts, energy levels and track-to-track flow. In addition, when importing a playlist, you may find that some tracks are missing or substituted if your new retail music player doesn't cover the licensing of your chosen tracks.

Practical playlist checklist for store owners

These checks help you avoid the most common pitfalls of playing music in your retail store:

• Is explicit content filtered?

• Is your playlist long enough to avoid repeats during a shift?

• Does the music you're playing match your average dwell time?

• Are transitions between tracks and playlists smooth?

• Do your playlists match the time of day and season?

Retail music systems: choosing hardware and setting up sound the right way

A retail music system allows you to actually play your music, and it consists of the following:

• Zones: the different areas of your business, such as the shop floor, checkout and fitting rooms, where you control music and its volume separately

• Speakers: placed for optimal coverage

• Amplification: how you boost the sound so it can be heard across the store

• A source: where you get your music, such as a business streaming service

• Network: essential for staying connected for seamless streaming

How to set up a music sound system for a retail store

Step 1: Define your retail store's zones

How many zones you need depends on your retail store layout. For example, a small boutique may only require one zone, while a department store needs several. In each one, the music needs are different – think about the different functions of each space and its acoustics.

Some examples of different zones include the entrance, sales floor, fitting rooms, checkout and staff areas. Identify the different zones, their functions and their place in the customer journey.

For example, on the shop floor, music should be appropriate for browsing, while by the checkout, people will be speaking to one another and handling transactions. In the fitting rooms, where people make decisions, the music should be unobtrusive.

Your chosen zones and the space they cover will inform the next step: which speakers to use and where to place them.

Step 2: select speakers for the space

Your two main options are ceiling speakers and surface-mounted speakers. Ceiling speakers sit flush with the ceiling and direct sound downwards – most retail stores use these, as they save space and provide even coverage. 

If you can't mount speakers in your ceiling, you can use ones that attach to it or to a wall – surface-mounted speakers. These ones project sound outwards. They do take up more space and are more visible, which may factor into their placement.

With speaker placement, consistency is key. It's worth investing in more speakers at a lower volume rather than a single that blasts music through the space and is inaudible on one side of the shop. Spreading them out also means avoiding hotspots, areas near the speaker where the sound is uncomfortably loud. Check the contents of your space, too, as hard surfaces can create echoes and soft furnishings can absorb some of the sound.

It's also important to use good-quality speakers, particularly if you're selling products at a higher price point. Otherwise, the sound can seem ‘tinny' and make customers perceive your brand as cheap. Clarity also supports comfort – your visitors will appreciate being able to hear music played properly.

A decent AV installer can help with speaker count and placement, but if you go the DIY route, test it with evenly spaced speakers to identify any issues and adjust them.

Step 3: plan volume strategy

Volume matters in different areas of your business. In the entrance, customers are getting to know your brand and deciding whether to come in – keep music audible and welcoming but not overwhelming. Shop floor music can be louder to cover ambient noise and to allow your customers to enjoy your brand sound.

Areas where you should lower the volume include the fitting rooms and checkout – in fitting rooms, people need to be able to consider and discuss their options, and at the checkout, transactions run more smoothly when the staff and customers can hear each other.

Step 4: connect your music source and test failover options

The source, where you get your music, can either run on a device such as a laptop, tablet, or phone, or a separate hardware player, such as the Soundtrack Player. While a web app or software is often cheaper and offers flexibility, a hardware player is generally more reliable. It's dedicated to a single task: playing music, and there are usually fewer buttons, so fewer things to go wrong. They also often provide offline playback if the network drops.

Once you've set up your hardware, test it by connecting your music source to your system and pressing play. The most important thing is that the music player is connected properly so that customers can hear the music.

Most modern music systems for retail stores rely on Wi-Fi, which allows for flexibility in speaker placement and where you control the music from. However, this relies on a stable internet connection. You could opt for a wired system, but this means more involved installation, and it limits your store layout.

Check your failover options – what the system does when the internet drops out. The best retail music system will have capabilities for when the Wi-Fi isn't working, such as an offline mode or cached music. With these in place, you'll rest assured that your customers won't be walking around in awkward silence while you fix the internet connection. You can test your offline mode by deliberately disconnecting the internet and waiting to see if the music continues playing.

Step 5: Calibrate and document settings

Make a note of every test you do, which speakers you've used and your chosen settings. This way, if something goes wrong, you can reset the system. And if your retail business has multiple branches, you can also replicate the settings so that every store sounds the same. This is particularly important when scaling your business – although testing is still important, you'll be able to save yourself time if you already know what works.

Optimization tips that prevent common complaints

Having a working retail music system is the first step, but optimization will get even better results. Here are some of the common complaints about retail background music and how to handle them:

• Staff fatigue: retail staff have to listen to music they didn't choose all day. One way to alleviate their pain is to avoid repetitive tracks and harsh frequencies. Make sure playlists are long enough to provide enough variety and match their energy.

• Having to shout over the music: It's annoying for customers to have to shout to be heard over loud music, and it's physically uncomfortable for staff to do it for hours at a time. Keep volume low around the checkout area.

• Echoes and hard surfaces: the different materials in your premises can affect how music sounds. Hard, smooth surfaces and empty spaces can cause echoes, but you can mitigate this with soft furnishings. 

• Inappropriate volume for the time of day: plan for when your retail store will be at its busiest and adjust the volume – louder for higher footfall, quieter when it's calmer.

How Soundtrack supports a complete retail music strategy

Soundtrack is a great retail music solution for stores seeking licensed music, suitable playlists and control combined with flexibility. 

As Soundtrack is a dedicated business music streaming service, it's built with the retail music features that matter. Publishing and recording rights are included, and, in supported markets, public performance rights are, too, so you can focus on the music rather than legalities.

It also provides over 2,500 curated playlists organized by categories such as mood, time of day and business and store type, so you don't have to spend ages building playlists.

There are also filters for explicit content, so your audience will never unexpectedly hear anything offensive. This is particularly important if you have daytime opening hours or expect families to frequent your store.

Daypart scheduling is also straightforward with Soundtrack – you can use the scheduling function (alongside the in-store audio messaging) to place a playlist in your calendar so that music follows the flow of the day rather than having to change it manually.

Brands with multiple stores can benefit from Soundtrack's multi-location control. A central dashboard allows you to manage music from one place, so it doesn't matter where you are when you set the music – it will play in your desired location. This keeps sound consistent across branches without each store needing a new setup.

Soundtrack offers flexibility – you can either play it through a dedicated hardware player, an app on your device or Sonos speakers. That means you should be able to use it with your existing retail music setup, saving money on new equipment.

Picking the right plan for your retail setup

Thinking about signing up for Soundtrack? Make sure you choose the right retail music solution. Soundtrack users can choose from three different retail music subscription plans:

• Essential: for teams who want straightforward, compliant music with centralized control. A great option for businesses who want to take the guesswork out of their music – schedule in-built playlists for when you need them, and create your own stations with AI, tags and Spotify.

• Unlimited: for deeper control. If you have the time and budget to spend on branding, Unlimited is for you. Create your own playlists and make your music your own. It also provides offline playback so you're covered even if your connection drops out.

• Enterprise: for complex environments. With Enterprise, your business music plan is totally personalized. It's designed for larger companies who require more attention, with priority support and a dedicated account manager.

Putting it all together: a simple retail music strategy framework

Despite the importance of music, it doesn't have to be complicated. You can simplify the process with the following framework:

• Define your brand sound: come up with three to five adjectives that describe your brand and make sure your music fits it. Eliminate any tracks, genres, or artists from your playlists that don't match.

• Licensing: while DIY means you only pay for what you license, a business music provider can keep things simple and save time on administration.

• Playlist architecture: Create a general brand sound, identify different dayparts, holidays and zones and tailor your playlists to those.

• Operationalize: Install your speakers, connect your music to your network and test everything. When it's up and running, choose who's responsible for music and check once a month to keep it fresh and incorporate any feedback from customers and staff.

Get these steps right and your music will be legal, on-brand and effective – essential for brand recognition and to keep customers coming back.