Retail group Clicks says that it will be shutting 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 selling physical media like CDs and DVDs to more general electronics and entertainment, it has not been able to keep pace with the rise of digital streaming and online entertainment.
This has been exacerbated by the Covid-19 pandemic, the group said, which resulted in a massive drop in foot traffic over the last year.
“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.
“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.
The full closure of Musica will take effect from 31 May 2021.
Musica has closed 19 stores since the start of the 2021 financial year and is currently trading from 59 outlets. The remaining stores will be closed as leases expire over the next four months when the majority of leases terminate, Clicks said.
“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.”