HMV has cited the doubling of its rent as the reason behind its decision to close its Oxford Street store, just three years after it returned to the location.
The flagship branch will disappear from the nation’s soon to be traffic-free busiest high street in March next year.
It raises the question as to what will fill the huge unit near Bond Street station, which previously housed Oxford Street’s largest candy store trading under a series of names including ‘Candylicious’ and ‘House of Candy’.
HMV had been a distinctive fixture of Oxford Street for almost a century since it was opened by British composer Sir Edward Elgar in 1921.
The original West End store at No 363 had traded under the iconic ‘His Master’s Voice’ logo complete with a dog and a megaphone.
But tough trading conditions forced the music store to close the flagship in 2019, after which it was taken over by a string of candy stores.
Its return in 2023, marked with a grand opening fronted by 1980s band Madness, sparked hope of a revival of Oxford Street and that better quality retail could once again be viable.
But despite a 25 per cent uptick in year-on-year sales, the group said a future lease requirement to help fund a renovation of the Oxford Street building made any future there ‘commercially unsustainable’.
HMV managing director Phil Halliday said the group was looking for a new West End flagship store.
He 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.
‘We’ve worked hard to make 363 Oxford Street a destination for pop-culture fans, bringing live performances, artist signings and a huge range of music and entertainment back to the heart of London. However, regardless of how much a location means to us, it has to make commercial sense.’
The brand, whose UK retail stores are operated by Sunrise Records Ltd, said it aimed to transfer staff to other stores and to its head office, with plans for a replacement shop by next year.
Mr Halliday added: ‘We believe passionately in the future of the high street and in the importance of places where people can discover music, meet artists and share their passions, and that hasn’t changed.
‘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.’
Number 363 Oxford Street is the freehold of the City of London Corporation, however it is subject to a long-term lease agreement with Glory Step Investment Limited, a Hong Kong-registered firm which acquired rights to the site in 2008 in a £40 million deal.
That company is controlled by the descendants of Kam Fai Shek, a billionaire businessman known as Hong Kong’s ‘Mahjong king’ for his empire of gaming shops in the city.
The short-lived resurrection threatens to add to the number of large empty units or low quality tourist-aimed shops, including unlicensed Harry Potter stores.
A temporary Formula One store near the Marble Arch end of the shopping street was promptly replaced by a souvenir and candy shop after its summer tenure finished in August.
The announcement comes as Oxford Street is due to go traffic-free on October 26, with buses, taxis and bicycles to be rerouted via surrounding roads.
A temporary pedestrianisation scheme will follow, before a full transformation is completed by the end of next year.