HMV Finally closing down for good?
- Thread starter Scania
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![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Well Game had a significantly different problem IMO, which was extreme levels of wastage in the same area.
They weren't only facing the issue of having to pay rent on property but having multiple unnecessary stores clumped together following purchases of other businesses.
Southampton was a good example, having 5 stores all within walking distance of each other, however that isn't an issue that HMV have so much I don't think.
HMV forcing themselves to have a presence in places where there isn't enough business for them isn't the same as what Game faced I don't think
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My colleagues husband works in the IT dept of HMV. They are not going to close within 4 weeks, but an american company are looking to buy their debt. Their xmas eve sales this (2012) year was double that of last year, but I don't know the figures.
[TW]Fox;23472665 said:
happend at currys a few years ago while i was still there. why do you think dixons stores all got closed down. only took them 5 years to do it though.
true hmv dont have the sheer numbers of stores but do have many stores that shouldnt be open anymore, the one nearest to me has been on its last legs for about 4 years now and each year the council some how manage to get hmv to stay open.
I wouldn't be surprised if part of the HMV agreements with labels and other distributors relies on how many shop fronts it has open over a geographic area to secure levels of pricing.
Rock and hard place spring to mind. Maybe they should take up Tax dodging to be competitive with the likes of Amazon and Play.
Rock and hard place spring to mind. Maybe they should take up Tax dodging to be competitive with the likes of Amazon and Play.
probably lump hollyweird in with that as well, as we all know how great they are when it comes to understanding the interwebs and new technology
GAME had the issue of not having closed stores which they either gained as part of a purchase of another chain (this is where most of the duplicates came from, EB Stores Group purchase GAME in 1998 and rebranded the entire group to GAME in 2002 but kept most of the duplicate estate) or as a result of new store openings in new shopping centres. There remains a market for this sort of content but competing for it with yourself was obviously problematic.
Years ago when competition was stiff multiple stores made sense. If a customer was not near a branch of GAME and wanted a game they could simply go to Gamestation, or Virgin Megastore, or Choices, or Woolworths, or HMV and you lost the sale. Having multiple stores was therefore of great benefit.
But the market changed and the main competitors vanished. Now if you wanted a game you....errrr... Went to GAME. So all the multiple stores did now was increase overheads.
There is still a big market for physical media. Contrary to what this forum thinks most consumers are not like them. Figure released today show that last year 75% of sales were non digital. That's down from the past but its still the vast majority. It will continue to slide but not at the rate some people think.
Years ago when competition was stiff multiple stores made sense. If a customer was not near a branch of GAME and wanted a game they could simply go to Gamestation, or Virgin Megastore, or Choices, or Woolworths, or HMV and you lost the sale. Having multiple stores was therefore of great benefit.
But the market changed and the main competitors vanished. Now if you wanted a game you....errrr... Went to GAME. So all the multiple stores did now was increase overheads.
There is still a big market for physical media. Contrary to what this forum thinks most consumers are not like them. Figure released today show that last year 75% of sales were non digital. That's down from the past but its still the vast majority. It will continue to slide but not at the rate some people think.
Overpriced: selling for an excessive amount
Loss leader store: a store that sells products at a loss, usually to build custom or awareness but sometimes as part of a hostile market strategy
So no, it didn't happen 5 years ago that Currys were both overpriced and running loss leader stores at the same store.
You think your local council is propping up HMV?
fair enough could have worded it better than loss leading, should have said not profitable.
as for my local store im guessing they have had rent rebates or at least rent and business rate cuts to keep them in the town center as after m and s they are the biggest employer on the high st.
as for my local store im guessing they have had rent rebates or at least rent and business rate cuts to keep them in the town center as after m and s they are the biggest employer on the high st.
I am talking about the market as a whole.
Source?
In 2011 according to the ERA digital made up 33% of music sales, with £333m of a £1066m total.
The ERA are reporting that in 2012 digital music sales increased to £383m, so unless total music sales totally nosedived and were less than £766m, I don't see how digital sales can have overtaken physical sales?
that reminds of high-street gadget shops. There's been a few of those round here over the years. Always full of people going in for a look. They always close down.
To be honest I'm not surprised, I can't really believe that more high street stores haven't folded through the recession.
The high street just has nothing to offer me, I did all of my Xmas shopping online, can't say it would bother me if I never had to visit a traditional store ever again.
HEADRAT
The high street just has nothing to offer me, I did all of my Xmas shopping online, can't say it would bother me if I never had to visit a traditional store ever again.
HEADRAT
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Surely they just open up around Christmas sell loads of junk then close again? It's been happening for years up here in places like the metro centre.
http://www.bpi.co.uk/press-area/new...ake-physical-in-uk-recorded-music-market.aspx
They unfortunately save all their best data as a paid for subscription, which due to work reasons I have access to.
Some interesting data for you, 99.8% of all singles are digital purchases and have been for quite sometime. Until around August 2012 Albums were more physical than digital, however for the first time digital Album sales beat physical later in 2012.
I haven't yet seen the figures post Christmas period as it always swings it, particularly as people like to wrap gifts up.
Maybe HMV should cut down to a few flag ship stores in major cities and then do "pop-up" stores November - Jan.
Soldato
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I love the way the banks (who are the main backers) are still trying to pump money into this dieing company - havent they learnt anything about toxic assets?