Canadian-owned and Ontario-based record chain, Sunrise Records, has shared details of their first-year earnings post national expansion. In April 2017, Sunrise Records announced they would be renegotiating leases left behind by bankrupt HMV. Following the announcement, the retailer expanded from 8 to 82 locations across Canada, filling the void for music and film retail in shopping malls.
Although overall physical music sales were down in 2017, Canadians purchased almost 22% more vinyl, and overall consumption was up 13% over the previous year, as reported by Nielsen Canada. There was also a noticeable increase in 3rd and 4th quarter physical sales across both CD and vinyl formats, which could be attributed to the opening of new Sunrise locations across the country. In addition to music, Sunrise carries movies and TV series, board games, music and entertainment apparel, turntables, and collectibles.
In 2017, Sunrise was profitable, surpassing internal sales projections competitive with 2016 Q3/Q4 HMV sales. The company projects at least 10% sales growth for 2018 with exciting new announcements to come, including an e-commerce site and the launch of a loyalty program. The chain will grow in store count in 2018, with locations yet to be revealed.
With a successful first year for the company, president and CEO Doug Putman is confident about what’s to come: “There is consistent increased demand for more places to buy physical albums, especially in markets with no other options. Sunrise is in the perfect position to provide that. We are taking measures to ensure we’re bringing our customers what they’re looking for and creating the best entertainment destination we can — more than just a retail store, a true experience.”
