CD and DVD stores could close by May after 20% fall in sales
PUBLISHED: 12:51 22 February 2018 | UPDATED: 13:56 22 February 2018
Another retailer could be set to disappear from the high street with stores at Great Yarmouth and Norwich at risk of the axe.
The owner of CD and DVD shop That’s Entertainment has said due to a 20% fall in sales from its retail estate it will be conducting a review into the viability of the brand’s stores with the worst-case scenario leading to the closure of all 29 sites by May, including those at Castle Mall and Market Gates shopping centres.
In a statement Entertainment Magpie said: “Media sales through the retail estate, which are less than 10% of company turnover, have declined by circa 20% in the last year meaning the sizeable fixed cost base that comes with running a retail estate is something that is becoming increasingly difficult for the business to absorb.”
The group will now enter a period of consultation.
It also owns Music Magpie which buys users pre-owned CDs, DVDs and games and sells them online.
The move comes against a backdrop of rising online sales, with Entertainment Magpie reporting 25% year-on-year growth from its digital channels.
The industry has been through turbulent times with the continued rise of online marketplaces such as Amazon and Ebay outperforming traditional bricks and mortar stores.
Other retailers have struggled recently with Toys R Us entering a company voluntary arrangement (CVA) to offset some of its debts which saw it close 26 UK stores.