Audio Video News

The last six Virgin Megastores in the United States will close between April and June.

They were still profitable, taking in $170 million last year. That was down from $230 in 2002, but those revenues came from 23 stores, most of which have since closed. Why not keep six stores that make an average of $38 million a year?

The answer is real estate. Virgin's last half-dozen retail outlets were in prime areas like Times Square and Union Square in New York and other central locations in Los Angeles, San Francisco, Orlando, and Denver. The real estate companies that bought the U.S. chain in 2007 think they can make more money by renting to new tenants.

To anyone who enjoys browsing through a brick-and-mortar music and video store, the loss of Virgin's American outlets will come as a blow--though not exactly a surprise, given the demise of Tower in 2006, the death of Circuit City (a major software as well as hardware retailer), rumors surrounding Blockbuster's ill health, and the increasingly moribund nature of the music industry in general.

The stores that are prospering in the shuddering economy don't exactly offer a great brick-and-mortar experience. Amazon may offer the world's best selection, but it's a lonely place to be on a sunny weekend afternoon, and no one goes to Walmart for the ambience.