Musica is officially shutting down its South African stores from May 31, 2021, announced the brand’s owner Clicks. This follows after years of struggle.
Clicks acquired the brand in 1992 and enjoyed decades of success. However, the shift from physical media like CDs and DVDs to digital media and streaming has hit the industry hard. The situation has been made even more dire during the COVID-19 pandemic.
“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 in a statement.
“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.”
Thus far, 19 stores have already closed in the 2021 financial year and the remaining stores will fully close from May 31, 2021 as leases expire.
“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,” said Clicks.
“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.”
Picture: River Square Shopping Centre