Musica turnover slides amid store closures

Clicks Group has reported that its music and entertainment retailer, Musica‘s turnover declined marginally as it continued to reduce its footprint.

Overall, Clicks Group reported a 13.6% increase in turnover to R17.5 billion for the year to August 2013,

Diluted headline earnings per share increased by 9.2% to 298.6 cents and the total dividend was increased by 10.5% to 168 cents per share.

Operating profit increased by 9.1% to R1.1 billion.

Musica however, saw a decline in turnover to R862 million, from R872 million in 2012, while the group closed 16 stores, but also opened two during the reporting period.

The number of stores at 31 August 2013 stood at 120, from 134 in 2012.

Clicks chief executive, David Kneale said: “Musica continued to gain market share in CDs and DVDs, despite the net closure of 14 stores. The brand’s comparable store sales increased by 5.9%.”

South African music stores have been hit by the launch of a number of online services led by Apple’s iTunes Store at the beginning of the year.

SA music retailer Look & Listen aims to re-launch its digital music store before Christmas as it ties up negotiations with various suppliers.

Musica pointed to good growth in technology, contributing  13.9% towards total turnover.

Musica Performance
Musica Performance

Discussing the outlook for the year ahead, Kneale said the current weak consumer spending environment is expected to continue. “Trading over the important festive season will therefore be critical to performance in the year ahead,” he added.

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Musica turnover slides amid store closures