HMV to Close Flagship Oxford Street Store Amid Rent Hikes
The iconic music and entertainment retailer cites unsustainable rent increases and renovation costs as reasons for vacating its historic London location.
HMV plans to close its flagship store located at 363 Oxford Street in March of next year, citing unmanageable rent increases and renovation expenses. The decision comes just three years after the historic site was reopened.
Landlords have reportedly proposed doubling the rent for the premises, a move that HMV deems 'commercially unsustainable.' The chain is also facing a significant bill for necessary renovation works.
HMV, which first opened its doors on Oxford Street in 1921, closed the location in 2019 after falling into administration. Canadian businessman Doug Putman, who also owns the Toys R Us chain, acquired HMV and reopened the Oxford Street store in November 2023.
Phil Halliday, managing director of HMV, expressed frustration over the commercial viability of the store. "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," Halliday stated. "It's frustrating that it has been made commercially unviable."
Despite the closure, HMV aims to maintain a significant presence in London and is actively searching for a new store in the West End. The company plans to transfer employees affected by the closure to its two other London stores and its head office.
The move comes as HMV experiences a sales resurgence. The chain, which operates 123 stores across the UK, reported a 15 percent increase in sales for the first nine months of the year. Total revenues are projected to reach £240 million, up from £212 million in 2025. This revival is attributed to a renewed demand for physical CDs and vinyl records.
"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," Halliday added.
Halliday has previously been critical of government tax policies, arguing that high street retailers bear a disproportionate tax burden compared to online competitors like Amazon and Apple. He has called for a more even distribution of tax increases.