After the death of Tower Records, I think this piece of news was inevitable. The Virgin Megastores were perhaps the most recognizable of the major record stores in the U.S., perhaps tied with Tower in terms of recognition, but now they’re closing up shop here. The chain isn’t going out of business (yet) as they still have plenty of international locations, and interestingly, the last remaining locations to close in the States are actually turning a profit. So, what’s the reason behind the closure of the incredibly popular Times Square store, for example?
Well, as it turns out, those locations are not actually owned by the Megastores chain, but rather the real estate companies Related Companies (yes, that’s the name) and Vornado Reality Trust. Apparently, they didn’t really care about the stores, but rather, the underlying property, which is understandable considering how exorbitant the value of land in the middle of Times Square must be.
With no Tower Records and no Virgin Megastores within our borders, it looks like indie record shops and “big box” retailers like Wal-Mart, Target, Best Buy, and Borders are all that’s left for brick-and-mortar music distribution.
Is this a good or a bad thing?
Virgin Megastores announce clousures, including Downtown Disney [Examiner]
I’d say it’s a bad thing, but if they can’t remain competitive then it’s clear they are doing something incorrectly…
I agree, it’s a bad thing. A very bad thing. At this point, if the industry decides to jack up prices, they’ll basically be cutting their own throats. Piracy will sky rocket, even with online stores, because the economy is so volatile right now. I think people would rather chance being sued by the RIAA rather than shell out big bucks for music. But I could be wrong, and the opposite happens, and this turns out to be a good thing.
Stranger things have happened.