HMV to close Oxford Street flagship store due to rising costs

HMV has announced it will close its flagship Oxford Street store in March next year, only three years after its reopening. The entertainment retailer cited a doubling of rent demands and the cost of ‘substantial’ renovation works as the primary reasons, stating the combination would make the location ‘commercially unsustainable’.

Managing director Phil Halliday described the decision as ‘frustrating’, noting the site’s historical significance as the company’s original location from 100 years ago. Despite the closure, HMV expressed a commitment to maintaining a ‘significant presence’ in London and is currently searching for a new flagship site within the West End district.

The closure will affect just over 50 workers, though the company intends to redeploy staff to its other two London locations or head office roles. This move comes despite strong financial performance for the group; like-for-like sales rose 15% in the first nine months of 2026, and annual revenues are projected to exceed £240 million this year.