Canadian Music Retail Music World To Close Shop

Rob Williams

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From our front-page news:
While purchasing some music at popular Canadian music retailer Music World earlier, I was told that all sales were final due to the companies plans to go out of business. The exact date is not known, but it should be between Dec 31 and the first week of January. Music World has 72 stores across Canada, falling just behind HMVs 126.

Reasons cited for closing were simple: "Wal-Mart". That's an easy answer, however, as the bigger problem could be that music sales have been declining at an alarming rate in Canada for the past decade. A Reuters article published earlier this year noted a 35% drop in hard-copy music sales in the first quarter, compared to Q1 of 2006.

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The rapid decline doesn't look to be slowing down, and with a 72-store outlet closing shop, it's not too reassuring on the state of things. The good news in all of this, if any, is that HMV will be gaining all of Music Worlds customers, which will better help them keep strong, although their stability is greater to begin with due to a much larger backing and loyal customer base.

Due to the closing, it's to be expected that "fire sales" will occur before the final light switch is flicked off, so if you are a music fan, you may want to keep an eye out at your local store the second half of December.
 
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