HMV is set to close its flagship Oxford Street store in March next year, less than four years after returning to the historic site, following a proposed doubling of its rent.
The entertainment retailer said the increased rental costs, combined with the expense of substantial renovation work, would make the store at 363 Oxford Street commercially unviable, despite strong sales growth.
The closure comes three years after HMV returned to the location in November 2023, having previously vacated the site in 2019 following its collapse into administration.
HMV first opened at the address in 1921, making it a significant part of the retailer’s history. The flagship has since hosted live performances, artist signings and events for music and pop-culture fans.
Managing Director, Phil Halliday, said: “This is a special store, it’s where we began 100 years ago and bringing it back to life in 2023 was a big moment in our recent history. However, regardless of how much a location means to us, it has to make commercial sense.”
He added that, despite the setback, the business was looking ahead and focusing on its plans for 2027.
The planned departure comes amid continued growth for the retailer. Like-for-like sales rose 15% in the first nine months of 2026, while HMV expects UK revenue to exceed £240m this year, up from £212m in 2025.
The business currently operates more than 120 stores across the UK, alongside its online operation. It’s now searching for a replacement flagship site in London’s West End, with plans to open a new store in 2027. The retailer hopes to transfer affected employees to the new location, while also exploring opportunities across its other London stores and head office.
Mr Halliday said the company remained committed to physical retail and the role of high street stores in bringing music fans together.
“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,” he said.
The company is also investing in a new website and warehouse facility, both scheduled to launch in March.
