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HMV records 37m loss for first half

GAME closures nudge tech and games sales up a "disappointing" 6%

Entertainment retailer HMV has recorded a loss of 37.3 million for the 26 weeks to October 27, compared to a loss of 48.1 million last year.

The group has warned it is likely to breach its banking covenants in January but it is having "constructive discussions" with its banks. Sales were down 10.2 per cent over the summer.

It said that due to the closure of multiple GAME stores over the period, it saw an increase in technology and game sales of 6 per cent, although this growth was "disappointing".

"HMV has had a difficult first half," admitted Trevor Moore, CEO. "However, the business has started to deliver a number of new initiatives which will help to maximise the seasonal sales opportunity and provide a platform for growth in 2013.

"Additionally, as we trade through this period we will continue to develop further initiatives with our suppliers and I will provide updates at the appropriate time."

A report yesterday suggested the business was being propped up over Christmas with 40 million from its suppliers.

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Latest comments (6)

Morville O'Driscoll Blogger & Critic 3 years ago
It said that due to the closure of multiple GAME stores over the period, it saw an increase in technology and game sales of 6 per cent, although this growth was "disappointing".
Sadly, if what I've seen in the Sheffield High Street store is representative of the wider picture nationwide, HMV kind of only have themselves to blame for this. The gaming section (which I think a lot of people expected HMV to push following Game's closure) has remained static, and in the case of the PC section has actually been reduced. The Wii section has also been reduced, though that's to make way for the WiiU, and is somewhat forgivable. There was no clear movement to promote themselves as a replacement to Game, and the window of opportunity has now closed; Game has re-opened its Sheffield High Street store, and HMV has lost out.
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Dan Howdle Head of Content, Existent3 years ago
Everything is a file now. I find myself trying to ZIP my food shopping so it's easier to carry. Bricks and mortar stores can't sell files.
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matthew bennion Web Development 3 years ago
Being a complete rip off and pushing hardware warranty sales doesn't help in making them anymore appealing than Game
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Sam Maxted Journalist / Community / Support 3 years ago
They're simply too expensive. If I can find what they have cheaper elsewhere on the high street - let alone online - I don't see any reason to go there. I look occasionally to see if they've upped their game, but it's always the same old story.
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Andreia Quinta Creative & People Photographer, Studio52 London3 years ago
I've been in the UK not even for two years. In that time I went into HMV twice, and I have to say I never left impressed by anything. I would have thought that in the UK the market would years ahead of where I came from and yet I was completely wrong. It's more aggressive on sales, up-sales, pushing insurances on devices and membership cards (read GAME) and impersonal.

I thought they would up their game with GAME saying game-over in March, but I was wrong obviously. These people have no vision, no idea whatsoever in how to appeal to people. There's no passion, just profit in mind.
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Morville O'Driscoll Blogger & Critic 3 years ago
It also gets a lot worse when you realise that Waterstones and HMV were, until relatively recently, owned by the same company. Everyone can agree that Waterstones have always been pretty good (excluding the "Grrr, big corp undercuts small bookshop" anger). And yet, HMV? Meh.
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