Vinyl revival puts shine on Golden Discs profit
Golden Discs turns to profit in 2016 after a €466,000 loss in 2015
Golden Discs flagship store on Patrick’s Street in Cork: In its latest annual accounts for the period to the year ended December 2016, the group returned a net profit of over €172,000.
Record store chain Golden Discs has returned to profit partly as a result of vinyl sales, the company said on Tuesday.
In its latest annual accounts for the period to the year ended December 2016, the group returned a net profit of over €172,000. In 2015 the group made a net loss of over €466,000.
In addition to the 100 per cent increase in vinyl sales, the group puts its reversal in fortunes down to a number of new shops. The company recently opened an outlet in Dundrum Town Centre, a pop-up store on Dublin’s Henry Street for the Christmas period and a store on Limerick’s Cruises Street. It now has 13 standalone shops nationwide.
The success of its newest outlets are leading to considerations for an expansion of the branch network, according to the company’s chief executive, Stephen Fitzgerald.
Having traded since 1962, the company claims to be Ireland’s largest entertainment retailer after a number of rivals ceased trading in Ireland.
Last year’s loss of almost half a million euro came after the company made a small profit of €30,000 in 2014. Looking to the future the company said that performance so far this year is “in line with forecasts”. It cites strong album sales from Ed Sheeran, Imelda May and Harry Styles.
Retail giant Amazon and entertainment companies Netflix and Spotify have caused disruption in the entertainment retail space for the past number of years. Golden Discs hopes to solidify its return to profit with the launch of a new webstore later this month which it says will have an “extensive range of catalogue”.
Another facet of the business that the chief executive hopes to build upon is its vinyl lounge project – an exhibition space and music venue in its flagship Cork store. It is understood that the company is looking for space in Dublin to expand the concept.