Doubled rent is pushing HMV off Oxford Street, three years after its comeback
HMV will close its flagship Oxford Street store next March, less than four years after returning to the historic site — after landlords proposed doubling the rent on the shop. The entertainment retailer said it would vacate 363 Oxford Street in March 2027 but is hunting for a new West End home, promising to keep a “significant presence” in the capital.
The company said the proposed rent rise, combined with a bill for “substantial” refurbishment works at the premises, would make the store “commercially unsustainable”. The decision affects just over 50 staff, whom HMV said it hoped to redeploy to its two other London shops and its head office while the search for new premises continues.
A century of history at the address
The closure ends a third stint at 363 Oxford Street for a brand whose roots at the address go back more than a century. HMV first opened the Oxford Street shop in 1921, and it traded there through much of the 20th century before the chain’s collapse into administration in 2019 forced the closure.
That might have been the end of the story. But the business was rescued by Canadian entrepreneur Doug Putman’s Sunrise Records empire, and in November 2023 HMV triumphantly returned to its old home after a four-year absence — a comeback that made national headlines at the time.
“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,” said Phil Halliday, HMV’s managing director. “It’s frustrating that it has been made commercially unviable. However, we are looking ahead, and our focus is now on what we do to make exciting steps for HMV in 2027.”
Trading is strong — the rent is the problem
What makes the closure sting is that it is not a story of a failing shop. HMV says trading at the Oxford Street store has been strong, with sales up 25 per cent year on year. Across the group, like-for-like sales rose 15 per cent in the first nine months of 2026, and the retailer expects UK revenues to top £240 million this year — up from £212 million in 2025.
That is the cruel arithmetic of the high street in 2026: a store can be selling more than ever and still be priced out of its own premises. The company runs more than 120 shops across the UK alongside its online operation, and says it remains committed to physical retail and the high street.
What happens to the staff
HMV said it hoped to transfer affected team members to its other London stores and head office roles, and was exploring ways to minimise the impact on jobs while it looks for a new flagship site.
Mr Halliday added that the chain was actively looking for a new West End site and remained determined to give London a store that music fans could be proud of.
A street in flux
The timing is notable. HMV’s departure comes just as Oxford Street begins the first phase of its long-promised pedestrianisation, with almost a kilometre of the street set to close to general traffic from 26 October. The transformation is meant to revive the country’s most famous shopping street — but rising rents and refurbishment costs are exactly the pressures that have driven big names away from it in recent years.
For now, music fans have until March to make one last pilgrimage to 363 Oxford Street. The shop that survived a century, an administration and a four-year exile could not survive a doubled rent bill.
