Retailer Musica to cease trading
Musica will soon be no more. Clicks Group announced on Thursday that it will close the music retailer’s stores countrywide.
“Shareholders are advised that the board of directors has taken a decision to close the group’s heritage entertainment brand Musica with effect from 31 May 2021,” Clicks said in a statement issued via the JSE on Thursday.
Clicks has already closed 19 Musica stores since the start of its 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 most leases terminate, the group said.
Musica, which has been South Africa’s leading music and entertainment brand for decades, was acquired by Clicks Group in 1992.
“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.
“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 it is committed to absorbing Musica employees into the group’s health and beauty stores, where this is “operationally feasible”. — © 2021 NewsCentral Media
