HMV is to close its London flagship store in Oxford Street three years after reopening, blaming soaring rental costs.
The entertainment retail chain returned to the historic site at 363 Oxford Street in London – a location it first occupied in 1921 as a gramophone brand – in 2023 after a four-year absence and put a seven-figure investment into the store.
But it says it will depart the space in March 2027 and is on the lookout for a new site in the West End after landlords proposed doubling the rent on the property, making it "commercially unviable".
“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," said HMV MD Phil Halliday. "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 new 10,500 sq ft space is the biggest dedicated entertainment retail site in the UK capital.
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
Phil Halliday, HMV
HMV says its search for a new central London flagship is progressing and "forms part of a continued commitment to physical retail". While much will depend on current negotiations, HMV’s management says it hopes existing staff "will be able to transition to a new site opening its doors in 2027".
“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,” added Halliday.
“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.”
HMV owner Doug Putman came to the rescue of the brand in 2019, but high rents and business rates meant that the Oxford Street store was not viable at the time. The famous retail location was occupied by a candy store prior to its 2023 reopening.
Over the years, HMV Oxford Street featured performances and signings from artists such as The Weeknd, Kylie Minogue, Spice Girls, and more. Blur performed a rooftop gig at the shop in 1995.
The retailer has over 100 sites across the UK.
PHOTO: Leon Neal/Getty
