HMV is to close its historic Oxford Street flagship just three years after its triumphant return, after a proposed doubling of the rent and a hefty renovation bill made the store “commercially unsustainable”.
The entertainment retailer will leave the site at 363 Oxford Street in March next year, ending its latest chapter at one of London’s most recognisable music retail locations. It is now searching for a new flagship premises in the West End, insisting it remains committed to maintaining a significant presence in the capital.
The closure comes despite a strong trading performance across the business, highlighting the pressure that property costs can place on retailers even as sales recover.
HMV said landlords had proposed doubling the rent, while the store also faced “substantial” renovation costs. Together, the expenses would make it commercially unviable to continue at the site.
Phil Halliday, HMV’s managing director, described the decision as frustrating, given the store’s place in the company’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,” he said.
“It’s frustrating that it has been made commercially unviable.”
The Oxford Street shop first opened in 1921. HMV departed the location in 2019 after the retailer collapsed into administration, triggering store closures and job losses. The business was rescued by Canadian entrepreneur Doug Putman’s Sunrise Records, before the flagship reopened in November 2023 following a deal with landlords.
Its latest departure comes as Oxford Street prepares for a major transformation, with the first phase of pedestrianisation due to begin on October 26. Almost a kilometre of the road between Orchard Street, near Selfridges, and Great Portland Street will close to general traffic, with buses, taxis and other vehicles diverted.
HMV, which operates 123 stores across the UK, said its wider business remained in robust health. Like-for-like sales rose 15 per cent during the first nine months of 2026, while combined shop and online revenues are expected to exceed £240 million this year, up from £212 million in 2025.
The group said it would seek to redeploy affected staff to its other London shops and head office, while looking for a replacement 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,” Mr Halliday said.
The challenge now is finding a new home that can preserve HMV’s high-profile London presence without exposing the retailer to property costs it can no longer justify.
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