Real Groovy Wellington is closing down as a loyal customer base is not enough to keep a large format independent music retailer going in tough economic times.
Owner Mark Thomas believes there is a place for independent music stores and would like to get one going again in Wellington, but at the moment he is putting sale stickers on the stock of the store he has.
The store in Cuba Street, regarded as a Wellington institution, employs 12 people. All will lose their jobs. Real Groovy Records Ltd collapsed in 2008 when it was the nation's largest retailer of new and used music. Mr Thomas took on the Wellington store, and a former staff member took on the Christchurch store, which has since been struck by the earthquakes in that city.
Appreciative messages were posted on the Wellington store's facebook page and Mr Thomas said many well wishers called in today.
Mr Thomas attributes the closure of the Wellington business to a combination of factors.
"The recession has definitely impacted on peoples' spending habits. When it costs over $100 to fill your car, you are not going to have a lot of money left in your wallet at the end of the week.
"People have less and less money to spend on nonessential items and when the internet is available where you can get a lot of things for nothing, or next to nothing, I guess a lot of people are taking that option," he said.
The store had also been "up against big competition who price things extremely cheaply as loss leaders, which makes things extremely difficult".
The large store also had big overhead expenses.
Mr Thomas, who has managed the store since 1999, said the facebook messages had been fantastic.
Any future business he operated would "probably be more and more secondhand and more and more specialist", he said.
"There will always be a market for CDs, DVDs and vinyl, just not in a store this size."
"Now is the time to make the call before it gets too difficult," he said.
The shop was having a sale until it closed.
