In move that some might call risky, Sunrise Records announced this past weekend that it plans to take over 70 retail spaces soon to be vacated by HMV.
Canada's biggest music retailer, HMV announced plans in January to close all of their locations by April of 2017, after failed restructuring and attempts to turn a profit in a market that is largely turning to digital consumption of music and movies.
Regarding the decision to purchase so many locations once used by their former competitor, Sunrise president Doug Putman says, "The reality is there is a large amount of customers that want that physical product that they can touch and hold and have". He also noted that by lowering head office costs, renegotiating leases, and having a more in depth catalogue, Sunrise can succeed where others have failed.
Putman purchased Sunrise in 2014 from Malcolm Perlman, who had closed all but 5 Sunrise locations in the years leading up to the sale. Since his takeover, Putman has opened up 5 more stores in Ontario, all of which he claims are profitable.
The 70 purchased spaces are located in malls across Canada including locations in Edmonton, Burnaby, Winnipeg, Hamilton, Mississauga, and Saint Bruno. The new Sunrise locations are expected to open later this spring once HMV has liquidated their stock, vacated the spaces, and removed their signs.
Are you surprised to hear this news? Do you think Sunrise Records can succeed where HMV has failed? Let us know in the comments!