UK sales up over 12 per cent for HMV
As retailer acquires 50% of 7digital for £7.7m to accelerate digital content ambitions
Entertainment retailer HMV has announced that sales in the UK and Ireland rose by 12.5 per cent, with like-for-likes up 1.7 per cent, for the 18 weeks ended August 29.
Sales across the entire HMV Group were up 4.4 per cent, and the company said it continues to accelerate growth in games and technology as part of its ongoing three-year plan.
"In a tough consumer environment, the Group has made a solid start to the new financial year," offered Simon Fox, chief executive of the HMV Group. "Our plans for the peak selling period are in good shape, and with a strong line-up across all product categories our focus is on providing our customers with the very best offers for Christmas.
"The strategic initiatives that comprise our three-year plan are on track, and beyond this we are continuing to drive new initiatives for further growth."
The retailer has also announced that it is acquiring 50 per cent of 7digital, a leading digital media delivery company, for GBP 7.7 million. Existing 7digital clients include Spotify, Universal, EMI, Warner Music, Sony and AOL.
7digital will now become the sole supplier of HMVs digital operations, with its catalogue of over six million digital music tracks as well as video entertainment. It will also provide a new e-books store for HMVs Waterstone's business.
"Combining our experience in digital and HMV’s brand, customer base and wealth of experience in music, video, games and book retail, we are creating a powerful force in digital entertainment," said Ben Drury, founder and CEO of 7digital.
"With consumer adoption of legal digital media now reaching the mass-market, this joint venture partnership is great news for our customers and suppliers."