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Retail group Clicks says it will shut down Musica in South Africa, after several years of decline.
Clicks acquired the brand in 1992, where it was a leading entertainment brand in the country for many decades, Clicks said.
However, despite a shift in more recent years from the sale of physical media such as CDs and DVDs to more general electronic products and entertainment, it has not been able to keep up with the growth of digital streaming and online entertainment.
This has been compounded by the Covid-19 pandemic, the group said, which resulted in a massive drop in foot traffic over the past year.
“Musica has been operating in a declining market for several years due to the global structural shift towards the digital consumption of music, movies and games from the traditional physical format.
“The inevitable demise of the brand has been accelerated by the Covid-19 pandemic, which resulted in a rapid decrease in foot traffic in destination shopping centers where Musica stores are normally located,” said Clicks.
The total closure of Musica will take effect as of May 31, 2021.
Musica has closed 19 stores since the start of fiscal 2021 and is currently listed at 59 outlets. The remaining stores will be closed as the leases expire for the next four months, when most of the leases end, Clicks said.
“In stores that have been closed since September 2020, Musica staff have been absorbed into the group’s growing network of health and beauty stores. Management undertakes to accommodate the rest of the staff within the group when operationally feasible.
“More details on the financial and operational impact of the closure of Musica will be communicated to shareholders with the publication of the group’s interim results in April 2021.”
Read: Clicks Says Pre-Lock Sales Were Unprecedented As Buyers Stocked Up
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