Remaining Virgin Megastores to Close by Summer

It's not just a sign of the times economically, it's also a sign of an ever-changing media landscape that has made CDs obsolete and has opened the door for digital downloads of music and movies. The last remaining Virgin Megastores in the United States will all close by summer, according to The Wrap. Just 24 months ago, there were 11 Megastores across the country, but declining sales over the past couple of years has already led to five of those locations closing their doors. Three of six stores still open will close next month, one in San Francisco and two in New York City. There is no announced timetable for the stores in Hollywood, Denver, and Orlando. If you wonder how Richard Branson remains a billionaire, well, he doesn't own Virgin anymore. He sold it two years ago, perhaps at a loss, but certainly for more than the company is worth today. But Virgin CEO Simon Wright said the acquisition of the company two years ago wasn't intended to make a mint on music and movies. “Their attraction was about real estate," said Wright. "In an ideal world it would have been possible to both have that real estate and develop the business along a different strand. But the economy has cut off that option." If you're looking for writing on the wall, Apple's iTunes is now the leading retailer for music in the United States, making the need for a multitude of CD stores unnecessary. As for the physical space left behind, the real estate at the heart of the deal made in 2007, the Times Square location will become a Forever 21. Because downloadable clothes haven't caught on just yet.

Comments

[Jay]

Shame about CDs :-(

Does that mean that when someone comes back to 'your place' for the first time, the only way to impress them with your music collection is to let them browse your iPod? (Note: 'browse your iPod' is not a euphemism!)