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Sanity officially closes down all its stores as it pivots to online sales

An iconic music retailer has officially shut down all 50 of its stores across Australia in a move that will tug at the heartstrings of one generation.

Australian music retailer Sanity closes physical stores

An iconic music and entertainment retailer has officially shut down all 50 of its stores across Australia as it tries to keep up with the digital age.

On Sunday, the very last two Sanity music stores closed doors for good.

The company will still sell its products online as it focuses more strongly on e-commerce as a revenue stream.

Sanity has been a staple for Australian music lovers for more than three decades, known for selling CDs and DVDs.

Its last two stores, both based in Queensland, at Brisbane and Bundaberg, shut down over the weekend.

In January, Sanity warned customers that closures were on the way, with all its remaining stores at the time set for the chopping block.

Shoppers took advantage of the sales as Sanity stores shut across the country. Picture: Alison Paterson
Shoppers took advantage of the sales as Sanity stores shut across the country. Picture: Alison Paterson

At its peak, Sanity had more than 200 stores across Australia.

However, its golden age is long behind it.

When Sanity stores in Far North Queensland closed early last year, stock was heavily discounted.

In the past few months, the company has been offering massive bargains for punters, including a 75 per cent off storewide sale to get rid of the last of its products in its remaining stores.

According to The Music, Sanity’s last store in Brisbane, in the suburb of Browns Plains, shut its doors forever at 4pm sharp.

Ray Itaoui purchased Sanity 13 years ago and said the brand had little choice except to close its physical stores because of the way music consumption has changed.

“With our customers shifting to digital for their visual and music content consumption, and with diminishing physical content available to sell to our customer, it has made it impossible to continue with our physical stores,” Mr Itaoui said in a statement earlier this year.

“Our online business – sanity.com.au – will continue to operate, and will service the many loyal customers the brand has continued to be dedicated to over the decades.

“Our priority right now is to ensure each of our team members knows exactly what this means for their career and employment future.”

An example of one of the advertisements for the storewide sales put out earlier this month.
An example of one of the advertisements for the storewide sales put out earlier this month.

The first Sanity-branded store opened in 1992 in Doncaster, Melbourne.

Its founder Brett Blundy had actually opened his first music store in 1980 under a different name. He was just 20 years old at the time.

In 2008, the company launched online music subscription service LoadIt but was scrapped months after its launch.

In 2009, the brand was sold to Mr Itaoui.

“The business prospered and remained successful for many years, thanks to the dedication and commitment of our entire team,” Mr Itaoui added.

“I would like to take the opportunity to acknowledge the Sanity team, past and present, and express my pride around their achievements, as well as thank them for their hard-work, dedication, and relentless commitment to ensuring they exceeded customer service expectations. Without this, Sanity would not have lasted as long as it has, and it’s this I am most proud of.”

Sanity revealed the closures in January. Picture: Alison Paterson
Sanity revealed the closures in January. Picture: Alison Paterson
The last two Sanity stores standing finally shut down on Sunday. Picture: Alison Paterson
The last two Sanity stores standing finally shut down on Sunday. Picture: Alison Paterson

Many Australians were saddened by the news.

“This was the place I’d buy my CDs and CD singles from when I was a teenager,” one man from Canberra said.

“I loved going in and seeing the top 20 albums of the week and the option of putting on the headphones to listen to an album before buying it. Ahh the memories. Thank you Sanity.”

A woman from Melbourne added: “This is so sad. I just bought CDs for Christmas presents from a store. Yes, people do still buy CDs. I will miss the record store experience.”

Some said they weren’t surprised Sanity stores were no longer viable.

“Glad the brand lives on through e-commerce, but sad to hear so many jobs will be lost. Unfortunately not all businesses can survive in this digital age we find ourselves in,” a Sydney man said.

“Was only a matter of time. CDs & DVDs are ancient now thanks to Spotify & Netflix. Thanks for your service over the years helping me buy music,” a Victorian woman said.

— With Chantelle Francis

Original URL: https://www.news.com.au/finance/business/retail/sanity-officially-closes-down-all-its-stores-as-it-pivots-to-online-sales/news-story/c95af7deac186d5e7f02d092e7d2f535