HMV has announced plans to close its flagship Oxford Street store just three years after reopening the site, attributing the decision to a doubling in rent demands. The entertainment chain said it would leave the shop in March next year, a move impacting just over 50 staff.
Rent and renovation costs
The group said landlords have proposed doubling the rent on the site at 363 Oxford Street. It also faces a bill for "substantial" renovation works at the store, which together would make the shop "commercially unsustainable".
HMV said it would look to transfer affected workers to its two other London stores and head office while it searches for a new site. It is hunting for a location in London's West End district for its new flagship shop, vowing to keep a "significant presence" in the capital.
History of the store
HMV made a grand reopening of its historic Oxford Street store in November 2023 after a four-year absence, following a deal secured with landlords. The retailer first opened the Oxford Street site in 1921 and was rescued from insolvency by Canadian Doug Putman's Sunrise Records business after closing the store in 2019.
Phil Halliday, managing director of HMV, said: "This is a special store, it's where we began 100 years ago and bringing it back to life in 2023 was a big moment in our recent history. It's frustrating that it has been made commercially unviable. However, we are looking ahead, and our focus is now on what we do to make exciting steps for HMV in 2027."
Robust trading
The closure plans come despite robust trading, with like-for-like sales up 15% across the group in the first nine months of 2026. Revenues for both shops and online trading are set to reach over £240 million this year, up from £212 million in 2025.
HMV has 113 stores across the UK, including six sites under the Fopp brand, as well as another eight in Europe. The group said it remained committed to high street stores. Mr Halliday added: "We hope to redeploy affected team members through other London stores and head office roles and are exploring ways to minimise the impact on jobs while we seek a new flagship site. We're actively looking for a new location in the West End and are determined to give London a store that music fans can be proud of."
