SA: Musica to cease operations by end of May

The closure is due to both the digitalisation of music consumption and the negative impact of the COVID-19 pandemic on Musica’s business. Clicks, which acquired the entertainment brand in 1992, said the decision was reached following years of tumbling sales in the market.

“Musica has been operating in a declining market for several years owing to the structural shift globally to the digital consumption of music, movies and games from the traditional physical format,” Clicks said. “The inevitable demise of the brand has been accelerated by the COVID-19 pandemic, which resulted in the rapid decline in foot traffic in destination malls where Musica stores are typically located.”

Clicks said it had already closed down 19 Musica stores since the beginning of its 2021 financial year, and is currently trading from 59 outlets. The remaining stores will be made redundant as their leases expire over the next four months.

Clicks added: “In the stores which have been closed since September 2020, the Musica staff have been absorbed into the group’s expanding health and beauty store network. Management is committed to accommodating the remaining staff within the group where this is operationally feasible. Further detail on the financial and operational impact of Musica’s closure will be communicated to shareholders with the release of the group’s interim results in April 2021.”

Meanwhile, Musica is running a clearance sale following the announcement of its closure. “Selected vinyl now only R200,” the entertainment store wrote on Facebook. “Buy three and get the cheapest one free.”