Retail pharmaceutical group Clicks has revealed that it will close down its entertainment brand Musica by 31 May, 2021.
In a trading update on Thursday, Clicks said the move is occasioned by the “structural shift globally to the digital consumption of music, movies and games from the traditional physical format.”
COVID-19 accelerates demise
“The inevitable demise of the brand has been accelerated by the COVID-19 pandemic which resulted in the rapid decline of foot traffic in destination malls where Musica stores are typically located,” the group added.
Musica has already closed 19 of its stores since the start of its 2021 financial year. 59 stores remain open, but will gradually close as their leases expire over the next four months.
The closure will bring to an end 29 years of Musica’s dominance in South Africa as the leading entertainment and music retail brand.
Clicks acquired it in 1992, but its market has steadily declined with the emergence of online music and video streaming services such as Spotify, Netflix and Showmax.
Musica staff absorbed
The group nevertheless said it is expanding its health and beauty store network, thus enabling it to absorb staff from Musica stores that have already closed down.
“Management is committed to absorbing the remaining staff within the group where this is operationally feasible,” Clicks added.
In the 21 weeks ending 24 January, 2021, Clicks’ retail health and beauty sales increased by 8 percent while group turnover rose by 7.8 percent compared to a similar period in the previous financial year.
COVID-19 accounted in large part to these increases because customers sought immunity-building vitamins and supplements. Online sales also jumped by 173 percent.
Besides its flagship Clicks, the group also includes franchise brands The Body Shop, GNC and Claire’s.