Hmv To Close Its Oxford Street Store Citing Soaring Rental Costs

HMV has announced it will close its flagship Oxford Street shop in March 2027, just over three years after returning to its historic home, citing a proposed doubling of its rent and substantial renovation costs.

The retailer says the combined costs would make the shop at 363 Oxford Street commercially unsustainable. The closure will affect just over 50 staff, and HMV says it hopes to redeploy workers to its two other London stores and itshead office, and is exploring ways to minimise the impact on jobs while it searches for a replacement site.

The address is particularly significant for the retailer, as it was where HMV opened its first shop in 1921. The chain closed it in 2019 after it went into administration, and it was taken over by an American candy store, swapping records and CDs for imported sweets before the music retailer returned in November 2023.

That reopening followed a new agreement with the landlords, but HMV says the proposed costs now make staying at the site unviable.

Managing director Phil Halliday described the shop as a special part of the company’s history and said bringing it back to life in 2023 had been a major moment for the business.

“It’s frustrating that it has been made commercially unviable,” he said.

The landlord’s decision to hike the rent comes just ahead of the pedestrianisation of Oxford Street, suggesting landlords expect removing road traffic from the street will drive a surge in shoppers, and therefore more retailers looking for sites to trade from.

The closure announcement comes despite improving sales across the group. HMV says like-for-like sales rose by 15% in the first nine months of 2026, while combined shop and online revenues are expected to exceed £240 million this year, compared with £212 million in 2025.

The company says it remains committed to high street shops, but is now focused on finding a new London flagship.

“We’re actively looking for a new location in the West End and are determined to give London a store that music fans can be proud of,” Halliday said.