HMV to close Oxford Street flagship after rent doubling proposal

HMV will close its flagship at 363 Oxford Street in London in March 2027 after its landlord proposed doubling the rent, with the retailer also facing substantial building renovation costs.

The decision comes despite sales at the store increasing by 25% year on year. HMV is seeking another West End location and plans to open a replacement flagship during 2027, Retail Gazette reported.

What happened

HMV said the combination of the proposed rent increase and a requirement to finance significant renovation work would leave the Oxford Street shop commercially unviable. No rent figure or estimate for the building works was disclosed.

The departure will end the retailer’s latest spell at its historic address less than four years after it returned. The decision concerns a growing store rather than one reporting falling sales, with property costs driving the company’s assessment of its future.

The pressure on the flagship comes alongside a wider debate over retailers’ operating costs, including calls from Marks & Spencer and John Lewis for Budget tax relief. HMV’s stated reasons for leaving, however, are the proposed rent and renovation obligations at this particular building.

The background

HMV reopened at 363 Oxford Street in November 2023 after four years away. Managing director Phil Halliday described the address as the place where the business began a century ago, giving the reopening significance beyond the addition of another shop.

Across the UK business, like-for-like sales rose 15% in the first nine months of 2026. That measure covers the wider operation and is separate from the 25% year-on-year sales increase reported for Oxford Street.

The company expects UK revenue to exceed £240m in 2026, against £212m in 2025 and £165m in 2019. The closure therefore sits alongside rising revenue expectations rather than a reported contraction in the national business.

HMV operates 123 UK stores. Its online operation is forecast to produce £50m in sales this year, while its European business is expected to contribute a further £15m.

Those company forecasts contrast with the more subdued wider outlook reflected in a forecast that the UK economy would shrink by 0.1% ahead of the Budget. The figures concern different measures, but underline the distinction between HMV’s trading performance and the broader economic backdrop.

What people are saying

Halliday expressed frustration that the Oxford Street site could no longer meet the company’s commercial requirements. He said its historical importance could not override the need for the store to be financially sustainable.

He pointed to the work undertaken since reopening to bring customers into the shop through live performances, artist signings and a broad music and entertainment range. Those activities formed part of HMV’s effort to make the address a destination for pop-culture customers.

Halliday also reaffirmed the company’s commitment to physical retail, describing shops as places for customers to discover music and meet artists. That emphasis on attracting people into town centres sits alongside UKHospitality’s call for licensing reform in its high street blueprint, although HMV’s announcement concerns its own store relocation.

What happens next

HMV said negotiations over a replacement West End flagship were progressing. It has not named a new address or given an opening date beyond 2027, leaving the timing of any gap between the two stores unresolved.

The retailer hopes to move Oxford Street employees to the replacement site. While that search continues, it is examining opportunities to redeploy affected staff to other London stores and head office roles to limit the impact on jobs. No number of affected employees was disclosed.

Separately, HMV is investing in a new website and warehouse facility. Both are scheduled to launch in March 2027, the same month as the Oxford Street closure.