HMV will close its flagship Oxford Street store in London in March 2027, just over three years after reopening the historic music shop, after landlords proposed doubling the rent. The retailer also faces substantial renovation costs at the site, which it says would make the store commercially unsustainable despite strong sales across the business.
The closure at 363 Oxford Street is expected to affect more than 50 employees. HMV says it is searching for a new flagship location in London’s West End and aims to maintain a significant presence in the capital.
Why Is HMV Closing Its Oxford Street Store?
The proposed rent increase, combined with the cost of major renovation work, has made continuing at the current premises financially unviable, according to HMV.
The company invested a seven-figure sum in bringing the store back in 2023. The 10,500-square-foot space became a destination for music and pop-culture fans, hosting live performances, artist signings and a wide range of entertainment products.
Phil Halliday, HMV’s managing director, said the decision was frustrating given the site’s importance to the retailer’s history.
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. It’s frustrating that it has been made commercially unviable.
Halliday said the business was now focused on its next steps rather than remaining at a site where the costs no longer made commercial sense.
However, we are looking ahead, and our focus is now on what we do to make exciting steps for HMV in 2027.
HMV Plans To Find A New London Flagship
HMV has said it is actively searching for another West End location. The company hopes to open a replacement flagship in 2027, although the timing will depend on finding a suitable site and completing negotiations.
The retailer also intends to limit the impact on staff by exploring transfers to its other two London stores and head office roles. Halliday said the search for a new location was part of HMV’s wider commitment to physical retail.
We hope to redeploy affected team members through other London stores and head office roles and are exploring ways to minimise the impact on jobs while we seek a new flagship site.
He added that the company wanted to preserve a central London destination where fans could discover music and meet artists.
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.
HMV has more than 100 stores across the UK, alongside its Fopp shops and European locations. The company says the planned closure does not signal a retreat from high-street retail.
From HMV’s 1921 Opening To Its 2023 Return
The Oxford Street site has been closely associated with HMV for more than a century. The retailer first opened there in 1921, when the business was known for selling gramophones and records.
HMV shut the store in 2019 after falling into administration. Canadian entrepreneur Doug Putman subsequently rescued the brand through his Sunrise Records business, and the Oxford Street shop returned in November 2023 after a four-year absence.
Its reopening marked a significant moment for the chain, which had previously faced difficult trading conditions and store closures. The site went on to host appearances and signings by major artists, including The Weeknd, Kylie Minogue and the Spice Girls. Blur also performed a rooftop gig there in 1995.
The planned 2027 closure therefore marks another change for a retail address with a long history in British music culture.
HMV Says Strong Sales Are Not The Problem
The closure comes despite encouraging sales figures reported by HMV. Like-for-like sales across the group rose by 15% in the first nine months of 2026, while combined shop and online revenues were expected to exceed £240 million for the full year, up from £212 million in 2025.
Drew Hill, managing director of music distributor Proper, argued that the Oxford Street decision should not be interpreted as evidence that demand for physical music is fading. He pointed instead to rising retail property costs and continued interest in records.
While it’s sad to see the closure of HMV’s Oxford Street flagship store, it’s clearly unrelated to the continuing demand for physical music. Vinyl sales are at an 18 year high, with Music Week reporting a near 14% rise on the year to date, and ERA noting UK independent record shops growing in 2025. Instead, this closure highlights the commercial rent pressures facing high-street retailers, which can impact any business despite strong consumer demand.
Hill also praised the work of Putman and Halliday in rebuilding HMV and expressed hope that the business would secure another central London site.
The Oxford Street closure highlights the challenge facing retailers that rely on large, prominent premises in expensive shopping districts. HMV’s next move will be to find a location that can preserve its role as a meeting place for music fans while making financial sense for the business.
