You might wonder why I'm posting about the earnings release of Hot Topic, a mall-based retailer that caters to trend-conscious teens. The chain does really big business in all things music, even recorded music. Shifts in music trends are affecting all sorts of retailers.

In its 10-Q filing (download PDF), Hot Topic explains how changes in music trends and listening habits have impacted its strategy.

"With the availability of music on the internet, we have seen a diversification of teen fashion preferences. We believe the iPod revolution has reduced the number of 'one genre' fans and, as such, requires a shift in our music strategy as well as our store design. In addition, as music is our primary driver of traffic, sales in our music-influenced apparel and accessories categories declined as well. The decline in sales resulted in inventory overages and increased markdowns primarily due to more frequent promotions and liquidation."

Interesting. So kids are listening to more genres of music -- which makes sense given their access via the Internet -- and Hot Topic has noticed a change in buying patterns. No indication was given what the new strategy will be. Less recorded music? Different genre mix? A music download store or in-store digital kiosk? Fewer metal accessories and more classic rock t-shirts?