Musica still going strong in South Africa
The last Look and Listen in South Africa will soon close its doors, marking the end of an era in the country.
Look and Listen was started almost 50 years ago in Johannesburg and was the go-to store for music, games, and related memorabilia for many years.
With more music lovers and gamers buying products online or using streaming services, the shutdown seemed inevitable.
The end of Look and Listen raises questions about the future of music and gaming retail stores in South Africa, and MyBroadband spoke to David Kneale, the CEO of Clicks Group, to find out what the future holds for Musica in the country.
Gaining market share
Kneale said Musica continues to gain market share in South Africa and now has 74% of the country’s CD market.
“In the past six months, sales have been under pressure owing mainly to a weak new release schedule and this highlights the cyclical nature of the music industry,” said Kneale.
“Pleasingly, sales of back catalogue CDs in Musica have held up well.”
Musica currently has 115 stores in South Africa and will look for “selective opportunities” to open new stores in retail locations. One of its most recent additions is the store it opened in Mall of Africa, said Kneale.
Broadening its offering
“In response to the challenge posed by music downloading, Musica broadened its offering into technology a few years ago, including headphones and speakers, as well as turntables and vinyl,” said Kneale.
“Musica has experienced strong growth in the technology category, driven by range extension and innovation. While music streaming does pose a threat to traditional music formats, Musica believes that the physical CD format will continue to be a major contributor to our sales for some time to come.”
He added that CDs are also critical for the profitability of the entire recording industry.
Kneale said technology is a key driver of Musica’s performance, and in the past six months “this category increased sales by over 10% and accounts for more than 20% of Musica’s turnover”.
“Musica recognises that the music and entertainment retail markets face challenges, but the brand remains profitable and cash generative for the Clicks Group.”
“Musica’s management continues to see market share growth opportunities across all product categories.”
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