Music World shuts shop

Piracy & digitisation take a toll on sales.

Spencer’s Retail is shutting down all its Music World stores across the country as it makes an exit from the music business. Spencer's which is focusing on the hyper stores, attribute the decision to exit the music retailing business to the consistently falling margins and sales of pre-recorded stored music due to a variety of factors including piracy, digitisation in the industry and increasing option of being able to download music straight off the internet. The last store to be closed will be its Park Street store on July 1stAs all Music World stores were on lease, closing will not affect the company with any idle real estate.According to reports, the group has felt a strong impact in past one years time when the sales dropped over 50 per cent. Revenues dipped to Rs 35-40 lakh a month in 2013 from Rs 70 lakh a month in 2012.  The group intends to retain the brand Music World and merge it with Spencer’s Retail. Music World retails audio CDs, DVDs, gaming consoles and software, besides other music accessories and home videos of leading brands.