Shop succumbs to technology

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Shop succumbs to technology

End of an era: Shane Morgan is disappointed about closing Leading Edge Music but said he has no choice.

RAPIDLY changing technology has claimed the scalp of a Leongatha music store.
Shane and Sandra Morgan from Leading Edge Music Leongatha are closing their doors after 35 years in the music retail business.
“This is the end of an era for us and it’s a bit sad,” Mr Morgan said.
“The retail music market has been a bit soft over the past few years and it’s hard to run a business when your main market is shrinking.
“With the increase of things like iTunes, digital downloads and online streaming, the retail CD and DVD business is definitely no longer the first choice when buying music.”
This is an issue which has caused many music retail shops around the globe to shut their doors.
“There is still a percentage of people who wish to buy the physical product, but this percentage is just not big enough to keep a business going,” Mr Morgan said.
Suppliers and record companies are noticing the decline in sales also.
“We’ve noticed, especially over Christmas, that there has been little product availability and weak releases,” Mr Morgan said.
The Leongatha store has been running for the past 12 years and the Morgans are happy with the support locals have shown over the years.
“We’re very grateful for the locals who shop here but unfortunately Leongatha can’t carry a CD shop anymore,” Mr Morgan said.
Closing down sales are on as the business shuts down, with the Morgans still filling customer orders and receiving new stock until the end of June.

Internet killing retail
LEONGATHA’S ‘Gatha Hardware is about to close its doors for good.
Last Thursday and Friday, the doors of the business were open to sell items to their loyal customers but, after a short sale in June, that will be the end, according to business owner Robert Clark.
Mr Clark points to internet shopping as the killer of retail businesses
everywhere.
“The best I could sell a Makita 18-volt cordless drill and make a small profit was $340. On the internet you can get the same item for $118. I just can’t compete with that,” Mr Clark said.
Mr Clark said foreign companies were setting up Australian “warehouses” and could avoid paying the GST. Without rent and staff costs they can sell items on line for a great deal less than the retailer.
He blamed a “totally incompetent government” for the dilemma facing all retailers.
Asked what Mr Clark planned to do with the freehold, he told The Star that he hadn’t yet made up his mind.
“The shop can be divided into three titles but until I clear out my stock I haven’t yet given it any thought. I have fielded a couple of approaches,” he said.

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Posted by on Jun 7 2011. Filed under Business, News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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