HMV Closing 60 Shops

Another grim day for retail

Posted by Staff
HMV Closing 60 Shops
High street retailer HMV is due to close 60 shops following lacklustre sales over the Christmas period and a decline in sales by 13%.

The five weeks leading to January 1st showed that like-for-like sales decreased by 12.9% and down 13.3% for the ten weeks leading up to the same period.

CEO for HMV UK Simon Fox said of the decision:

"Whilst HMV has had a challenging year to date, it remains a profitable and cash-generative business and a powerful entertainment brand."

"The pace of change in the markets in which we operate underlines the urgency with which we must continue to transform this business."

The company also expects to miss its profit targets for the full financial year, estimated to be set between 46-60 million. UKIE and Chart-Track data from yesterday suggests that the boxed videogame market has experienced a decrease of 30% over the last two years. Retailer GAME will also announce its Christmas sales figures during next week.

Are you sad to hear that HMV will be closing some of its stores? And do you hope the retailer will see an upturn in fortunes over the next few years? Any thoughts, feel free to post them in the Comments section below.

Source: Gamesindustrybiz
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Comments

haritori 5 Jan 2011 14:17
1/3
Might help if HMV were a bit more competitive on price, Not long ago i went in to purchase a copy of a Beastie Boys album, it was imported and they wanted 29.99, Amazon had it on CD delivered for 4.99, there DVD`s seem to be on the higher end of the price scale, in fact the only stuff that s priced reasonably is the sale items.
Joji 6 Jan 2011 05:10
2/3
Yeah, I can agree that they price their stuff too high, just like Game used to. I can agree that they need a better online presence too.

Sucks for some more retail people, as they are put on the dole cue, while HMV count their saved .
Andrew Alan White 24 Jan 2011 17:32
3/3
i live in ashington and the nearest HMV is newcastle my Question is 'Is the newcastle branch closing down.
e-mail me at [email protected] with the anwser please
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