‘Impossible to continue’: Sanity to close remaining stores due to dominance of digital music | Business

The dominance of digital music and streaming platforms has forced one of Australia’s most permanent retailers to close, with Sanity saying it will close its remaining 50 stores by April.

The company’s owner, Ray Itaoui, confirmed Wednesday that the music business will operate exclusively online from then onwards. He said it had to close.

“It has become impossible to continue a physical store,” Itaoui told Nine Network.

“Our online business will continue to operate and serve the many loyal customers that the brand has been dedicated to over the decades. Our priority now is ensuring that each member of our team , understanding exactly what this means for the future of my career and employment.”

Founded in 1980, this record, cassette, CD and video retailer operated more than 200 stores nationwide in the pre-digital age.

When Itaoui bought the company from founder Brett Blundy in 2010, record and CD sales were worth $367 million a year, according to market and consumer data analyst Statista.

Since then, that number has been steadily declining year after year. In 2020, digital music sales generated him $480 million in Australia, but the analog equivalent was only $62 million. Decreased.

Itaoui said online operations will continue to process all existing orders and gift vouchers.

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