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[Hellraizah]

When the 70-store HMV chain filed for receivership in an Ontario court in February of this year with $39 million debt on its books, the prevailing wisdom was this was the tombstone for physical music sales in a digital universe.

The opposite has rung true for 30-something Doug Putman who grew up working at the family business, Everest Toys, a manufacturer and distributor based in Ancaster, ON.

He moved into the music sales with the acquisition of the five-store, Ontario-based Sunrise Records chain from Malcolm Perlman in October 2014 and quickly doubled the number by opening in cities like Ottawa and North Bay. In April 2017, Putman surprised just about everyone with an ambitious plan to re-negotiate leases in all of the HMV locations and make Sunrise a national brand.

In just over two months Putman has opened up 50 more stores and "business is booming," he says.

It doesn’t stop here, either He has plans to have a fleet of 85 outlets by year-end.

“The numbers we are doing are off the chart, they are insane right now,” he shared in a phone interview yesterday.

“A lot of people just don’t realize the scope of demand still for CDs and vinyl."

http://www.fyimusicnews.ca/articles/2017/06/21/cds-spinning-big-sales-numbers-sunrise-records-chain

This chain is proving they have some pretty big balls. They had 9 locations at the beginning of the year and they are opening more than 70 stores in a couple of months in a market that is considered dead by many.

Think they have a chance to succeed?

 

[Lothars]

Yes I think they have a good chance to succeed.

 

[Version 3.0]

Money laundering front.

Just kidding. I won't try to predict the future, but best of luck to him.

 

[[KoRp]Jazzman]

Was shocked to see them open up in Regina and it looks nearly identical to HMV in terms of products. Wish them the best, just don't see how it can last.

 

[Mimosa97]

Vinyl yeah but CD's? Receipts please.

I guess they must have some very attractive prices if business is booming.

 

[Sectorseven]

 

[Shao Kahn Brewing a Stew]

They need to change the product that they're selling, and cater to more quality than quantity.

Vinyls are definitely helping.

 

[Hellraizah]

My fear is that the mall leases must be pretty expensive. While the vinyl market is expending, it's still from having mainstream appeal. It probably won't ever have mainstream appeal. It's still very cool to see such a bold move by a small store chain.

 

[BigJonsson]

I remember when my local mall had HMV, Sunrise and Music World

HMV prices were always the highest, but they also lasted like 15+ years longer.......

Are any of the new Sunrises opening in Toronto?

 

[Nerdkiller]

Our regional music and video chain has actually been expanding as of late, with a new store opening up down in Limerick just last week. All I can say is...HELL YEAH, I love my physical media!

 

[LakeEarth]

They have way more toys, shirts, lots of vinyl, and whatever on top of CD/DVDs, that's probably making their money that way. I am certainly surprised how many places Sunrise has popped up. Every HMV that I knew of is now a Sunrise.

 

[jstripes]

That's good news, but that's also some very rapid expansion. I hope he knows what he's doing.

I wonder what their floor layout is like. Is it 25% music, 75% Funko Pops like HMV?

 

[mr_nexus]

I hope they open a Sunrise close to where I live. I always liked Sunrise more than HMV anyway.

 

[Metalgus]

Oh! I saw a sign over an old HMV outlet the other day and I tgought it was weird that a record store of all things would open there. Seems like a big gamble, but I'll take a look when it opens.

 

[Hellraizah]

That's good news, but that's also some very rapid expansion. I hope he knows what he's doing.

I wonder what their floor layout is like. Is it 25% music, 75% Funko Pops like HMV?

Apparently, they are going to focus pn music and particularly vinyl. But I know they also sell other merch like t-shirts and board games. Percentage of each might be different in each store. They are supposed to give lots of leverage to each store manager for the stock they carry, which is a big departure from the ways of doing business at HMV.