TORONTO — A blast from the past is coming to Toys "R" Us Canada. HMV, the entertainment brand that departed the country seven years ago, said this week that it has begun selling merchandise in five of the toy retailer's Ontario locations. The rollout will continue across other Toys "R" Us Canada locations this spring, it said. Products for sale in the HMV-branded sections include CDs, DVDs, vinyl, record players and other collector items like T-shirts and books. The move, which marks HMV's return to the Canadian market, is being positioned by Toys "R" Us Canada as a way to appease consumer demand for pop culture, collector and nostalgic merchandise. Such products have long featured heavily in the playbook used by Putman Investments, an Ancaster, Ont.-based business which owns HMV, Toys "R" Us Canada, Sunrise Records, Everest Toys, FYE, T. Kettle and Rooms + Spaces. Putman got ahold of the HMV brand in February 2019, when his Sunrise Records and Entertainment Limited bought 100 HMV stores across the U.K. At the time, owner Doug Putman told The Canadian Press that it is "unlikely, but definitely possible" that he would resurrect the brand in Canada, where 102 HMV stores were shuttered in 2017. He planned to leverage his roots in the toy business by focusing HMV's U.K. offerings on fan-based merchandise, including board games, toys and licensed T-shirts. Putman later purchased Toys "R" Us and Babies "R" Us Canada in August 2021 from Fairfax Financial Holdings Ltd., which had nabbed the retailer for $300 million in 2018 from its U.S. parent, which had filed for bankruptcy protection. The toy and entertainment sectors have both seen a myriad of challenges in recent years. Both have seen high interest rates and inflation rankle customers and make some think twice about discretionary purchases. The toy sector has also grappled with the rise of giants like Amazon, a slow recovery from the COVID-19 pandemic, more interest in second-hand goods and a shift toward digital and experiential gifts. The entertainment industry has seen streaming services reign supreme, pushing many to eschew buying physical copies of films, television shows and albums. Vinyl, however, has been a bright spot. Sales of records have risen in recent years, pushing several retailers including Indigo Books & Music to highlight the category more prominently. This report by The Canadian Press was first published Feb. 1, 2024.
