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Retail

HMV holiday sales down 16%

Mon 09 Jan 2012 9:09am GMT / 4:09am EST / 1:09am PST
BusinessRetail

Like-for-likes better than expected, technology is growth sector as entertainment declines

Entertainment retailer HMV has revealed that sales over the five week Christmas period dropped 16.6 per cent.

Like-for-like sales were down 8.1 per cent for the five week period ended December 31, better than expected since the last statement.

In the nine weeks since HMV reported half year results, sales were down 18 per cent and like-for-likes 9.7 per cent.

A key area for growth for the company has been in technology products - of the 144 stores selling portable digital products, like-for-like sales were up 51 per cent in the five week period.

"The continuing actions to focus the business and to expand our technology offering are beginning to show through," offered Simon Fox, chief executive.

"We are seeing a combination of a slowing of the decline in music and film, and acceleration in the growth of technology. Undoubtedly trading conditions and the consumer environment remain challenging, but we remain confident in HMV's future prospects."

2 Comments

Bruce Everiss
Marketing Consultant

1,692 594 0.4
The idea of shipping physical cardboard and plastic around the world in order to distribute digital content is faintly absurd. Any Martian landing here would think we were several apples short of a picnic.

Posted:2 years ago

#1

Ian Brown
IT Developer / IT Infrastructure

107 26 0.2
Well from my personal experience, HMV stores are vastly over priced compared to other physical stores. When they sell games at 39.99 or more within walking distance of a generic game store selling the exact item for less what do they expect. Same goes for DVD's and Blu ray's. I saw the Predator triliogy on Blu ray in HMV for 45 when a few clicks online will get me it for 20 or less. Even other stores that sold the same box set were vastly cheaper than their offering. Reminds me of when the Kay's catalog company held its high pricing system to the bitter end and we in Britain saw how that turned out. I know physical stores have overheads so a premium is always going to be there, but surly selling more items for less is a better way to make money than selling nothing at a higher price?

Posted:2 years ago

#2

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