MUSICA

Clicks Group closes Musica: Here’s what will happen to workers

Published by Andile Sicetsha

On Thursday, Clicks Group announced that in as little as four months, all of its 78 Musica stores will be shut down, bringing an end to the premium entertainment business.

Clicks Group shuts down Musica

A place that harboured the best of the physical technology era, Musica will soon be a part of South Africa’s retail history. The decision, Clicks Group said, came as a necessary measure to maintain a business that has been severely hampered by the Covid-19 pandemic.

“The inevitable demise of the brand has been accelerated by the COVID-19 pandemic which resulted in the rapid decline in foot traffic in destination malls where Musica stores are typically located,” the retail giant noted in a statement.

Musica had 78 stores strategically situated inside shopping centres, before the pandemic. When Covid-19 struck, forcing harsh restrictions in movement, it also killed high numbers of foot traffic the entertainment stores attract.

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“Musica has been operating in a declining market … owing to the structural shift globally to the digital consumption of music, movies and games from the traditional physical format,” the statement read.

What will happen to workers

When the company’s 2021 financial year started in September 2020, Musica closed 19 stores. The remaining 59 outlets will cease once their respective leases expire in four months.

At the height of this shocking news is the scale of the workforce that is threatened. However, the retail giant eased worries when it confirmed that Musica’s employees will be absorbed into the group’s beauty and cosmetics network that closed its first quarter with positive gains.

Clicks Group did not indicate any future retrenchment in the works, despite several claims made on social media.

Musica was established and acquired by the Clicks Group in 1992. It is the longest-standing music and entertainment retail outlet in South Africa.

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