It is the end of an era for retail group Clicks after the company announced the impending closure of its entertainment brand, Musica.
The bricks and mortar entertainment brand, which despite transitioning from selling physical media like CDs and DVDs to more general electronics and entertainment, will be closing its last store in May of this year.
Clicks overall retail and beauty sales rose by 8% and their group online sales jumped a whopping 173%- albeit from a small base. This shift in consumer behaviour is a threat to not only jobs but also retail space in malls.
Musica and GameStop, two companies- similar but different. Regardless of current market value, time will eventually relegate both to past.
Unlike GameStop, Musica is only listed on the Johannesburg Stock Exchange through its parent company, health & beauty group, Clicks. The executives of which have promised to retain the jobs following the closure.
All Musica stores will close from 31 May 2021. Since the start of the year, 19 Musica stores have shut down while another 59 are currently trading. The rest of the stores will follow suit as leases expire in the four months leading up to the May 2021 deadline.
Musica has been part of the Clicks Group since 1992. It has been South Africa’s leading music and entertainment retail brand.
But it has been operating in a declining market for years “owing to the structural shift globally to the digital consumption of music, movies and games from the traditional physical format,” says the company. “The inevitable demise of the brand has been accelerated by Covid-19, which resulted in the rapid decline in foot traffic in destination malls where Musica stores are located.”