HMV has said its flagship Oxford Street store will shut its doors in March 2027. The decision comes after the retailer concluded that the location is no longer viable to operate. The company pointed to rising costs as the driving factor behind the move, noting that continuing to trade from the site would no longer make commercial sense.
It reopened in 2023 after a period of refurbishment, a move that the business described as a significant moment in its recent story. The reopening brought about seventy new positions, adding to the local workforce.
HMV to close 'unsustainable' Oxford Street store just three years after reopening its flagship site https://t.co/m0zJmMoBmn
Even as the closure date approaches, the store has been performing strongly. HMV reported fifteen percent like-for-like sales growth and turnover of £240 million for the unit. This shows that, despite the impending shutdown, the shop has been attracting customers and generating revenue.
In addition to higher rent, HMV highlighted the expense of refurbishing the space.
One of the key pressures cited by HMV is the cost of occupying the premises. The retailer said that site rent demands have doubled, sharply increasing the outlay required to keep the store open. Such a jump in rent has placed considerable strain on the economics of the location.
In addition to higher rent, HMV highlighted the expense of refurbishing the space. The group said it faces a bill for substantial renovation works needed to keep the store up to standard. These anticipated costs add another layer of financial pressure on the Oxford Street unit.
When the two factors are taken together – the steep rise in rent and the looming renovation bill – HMV concludes that the shop cannot be run profitably. The retailer has described the combination as making the outlet commercially unsustainable, which led to the decision to close.
HMV reveals plans to close its flagship Oxford Street store just three years after reopening the site, blaming a doubling in rent demands.
The closure will affect fifty members of staff. HMV has said it hopes to redeploy those team members into other London stores or into roles at its head office. The company added that it is looking for ways to limit the impact on jobs while it searches for a new flagship site.
Beyond Oxford Street, HMV operates three stores in London and a total of one hundred and thirteen locations across the United Kingdom. The business also runs six sites under the Fopp brand. While saying goodbye to the current flagship, the retailer emphasized its intention to keep a presence in the West End, explaining that it is actively seeking a new location and aims to offer London a store that music fans can be proud of.