The demise of HMV Canada has been exploited by Sunrise Records Canada. Initially taking over many locations of HMV and adding to their Ontario holdings, the plucky record retailer has carved out a niche for company.
Music buffs and their vinyl records are being supported by artists who also release in this medium. The sound differs from digital and appeals to people who love tangible music that they can touch, feel and hear.
The stores also carry higher margin merchandise of the entertainment industry. The kids might want a digital Scarface file or streaming video but they also want a T-shirt, poster and commemorative chainsaw. Those generate profits along with record, DVD and book sales.
There isn't room for multiple retailers in this market but one company with both a mortar and online presence is finding a way.
HMV Records closed in St. Vital and Sunrise didn't initially grab it. Polo Park and Kildonan Place got stores instead. However, as the company proved itself, Sunrise has decided to open in St. Vital more or less where HMV once was.
There are still major gaps to be filled in many malls as the result of Sears Canada closing but malls would do well to grab niche retailers like Sunrise to fill the rest of the mall.
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