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HMV profits fall

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HMV to close 60 stores as sales and shares slump

Shares in music and books retailer HMV Group have fallen 21% after revealing falling sales, weak profits and trouble meeting the terms of a bank loan.

The firm - which also owns Waterstone's bookshops - plans to close 60 UK stores in the next 12 months in order to get costs under control.

It said Christmas sales were down 10%, and warned profits would be at the lower end of forecasts.

Business was hit by the severe weather and "challenging trading conditions".

http://www.bbc.co.uk/news/business-12117510

Not surprising really what with stiff competition with online retailers. Even so, in terms of videogaming, I didn't think they faired too badly in the preowned market in comparison with GAME/ Gamestation.

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They've had essentially the same sale on for the past 3 months, their post-Christmas sale is one of the worst I've ever seen in that store, all of their front of shop (bar the chart) is discounted stock and IMHO they're becoming a budget brand.

The weekly/daily sales by Play, Zavvi etc in November and December probably have as much to do with these problems as the weather and moving into 2011 I don't see that being any different for them or GAME etc. The online discounts are reaching ridiculous levels at insane speeds now.

I'm interested to see how WH Smiths fare, because judging by their shops they've been adopting a pile it high, cheaply mentality and I wonder how that's working out for them.

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It makes HMV Christmas vouchers more fun though, as now they are kind of like a present and a race in one. It's become brinksmanship, do you wait until there is something you actually want, risking the stores going bust/not getting new stock and getting nothing, or do you fill you boots with tat to ensure you have at least got something for your money.

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I'm interested to see how WH Smiths fare, because judging by their shops they've been adopting a pile it high, cheaply mentality and I wonder how that's working out for them.

I was going to say something about F.W. Woolworth, and how that turned out for them, in the UK at least, but it turns out that "pile it high, sell it cheap" was the motto of Jack Cohen, who founded Tesco...

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Their prices of DVDs/Blu Rays are absolutely ridiculous. I was in the market for a copy of Toy Story 3 for Christmas and HMV were charging something daft like £10 more than the local supermarkets which themselves were charging more than internet retailers.

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Not surprising who wants to pay their stupid prices? I left it late to get a copy of Shutter Island on Bluray for a present for Christmas so went to HMV, they wanted £25 for it! Inception and all other new releases were only £20 and Shutter Island has been out nearly a year now. When I questioned the supervisor over the obvious fucked up pricing, he was such a cock.

:bye:

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Saw New Super Mario Bros Wii in there for £43... yes, FORTY-THREE. Pre-owned was £38. Big shame about job losses but like most high street retailers they have serious pricing issues and can only blame themselves for failure.

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No list of stores that they would consider closing? I bet they close one of the two stores they have on the same road in Croydon town centre.

I hope it's the one next to Anne Summers that goes.

Drummond fo' life, yo!

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No list of stores that they would consider closing? I bet they close one of the two stores they have on the same road in Croydon town centre.

In Manchester city centre there was until recently 3 stores within a five minute walk, two very large ones and a pointless little small shop. The small shop has now shut but I still can't see the justification of having the two others so close, not too mention that they also have a Fopp in between.

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In Manchester city centre there was until recently 3 stores within a five minute walk, two very large ones and a pointless little small shop. The small shop has now shut but I still can't see the justification of having the two others so close, not too mention that they also have a Fopp in between.

Well that's probably partly driven by the one on Market Street being their flagship store, but the Arndale and Manchester City Council deciding to turn that area into the old shitty shopping district and putting a whole new wing on the side of the Arndale and prettying up the Printworks area kinda killed that idea. I expect they bought that building (took them months to fit it out) but are tennants in the Arndale bit.

Along with with GAME etc, it kinda highlights the whole issue with long term retail leases.

I used to love that HMV, but it actually feels to big for the stock they carry now. When it first opened it was both AMAZING and horrendously expensive, now it is less amazing.

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Saw New Super Mario Bros Wii in there for £43... yes, FORTY-THREE. Pre-owned was £38. Big shame about job losses but like most high street retailers they have serious pricing issues and can only blame themselves for failure.

Yeah I saw it too. Good thing I have a mobile phone with internet access. In fact, whenever I go into HMV I have Play.com in the mobile browser specifically to compare prices.

I hope it's the one next to Anne Summers that goes.

Drummond fo' life, yo!

I think that one is bigger than the newer (old Zavvi and Virgin Megastore before it) one? Still, the newer one is far more central though.

As for Drummond... LOL you do know it's been officially Centrale for years now?

In Manchester city centre there was until recently 3 stores within a five minute walk, two very large ones and a pointless little small shop. The small shop has now shut but I still can't see the justification of having the two others so close, not too mention that they also have a Fopp in between.

Acquisitions I bet? The newer one in Croydon was a former Zavvi store that HMV bought up when they went bust.

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I honestly cannot understand how they could compete, they seemed to get into online retailing way too late for such an established brand store as well. I went in town over Christmas so decided to pop in, but the prices of their Bluray were just way off. I honestly cannot understand why anyone would willingly pay more for something rather than wait a few days and get it mail order. It was a weird store, sometimes you would go in and there was a few really good priced games (almost as good as the best mail order stores), then you would look around and see some that were totally overpriced and looked liked they had been priced wrong or not updated. Obviously just because a store is busy over Christmas doesnt reflect how well the store was doing.

I feel sorry for people that are losing jobs of course.

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I used to work in an HMV, I cant speak for them all, but what I saw was the least efficient retail company I've ever worked in, and I've been at a fair few. They do weird stuff with their catalogue, like the same items of stock costing different amounts depending on their buy-in price. Thats why you have (say) 3x copies of a game or DVD on the shelves, all at different prices, and they cant sell all 3 for the cheaper price.

Their games stuff was very badly done too, and they always end up with way too much overstock (explaining the COD remote control cars piling up behind the counter, and 50 thousand copies of Band of Brothers on the stairs). Theyre a weird shop.

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Their online pricing in comparison with their high street stores is much better in some respects. For example Sons of Anarchy Seasons 1 & 2 on DVD in store is £25 (as a sale item) yet only £12.99 online.

I've accumulated a lot of Pure points and can't find anything worthwhile to spend it on :(

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As for Drummond... LOL you do know it's been officially Centrale for years now?

Yeah, hence drummond fo life, but Centrale, what a BRILLIANT idea that's turning out to be, little more that a massively empty walkway from the old C&A to the existing drummond.

Anyone know what the (shit) occupancy rate is? Cos it was like a fucking ghost-town when I was there at the beginning of december.

[edit]

Oh fuck, my BIL works at HMV!

Edited by SeanR

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Their online pricing in comparison with their high street stores is much better in some respects. For example Sons of Anarchy Seasons 1 & 2 on DVD in store is £25 (as a sale item) yet only £12.99 online.

I've accumulated a lot of Pure points and can't find anything worthwhile to spend it on :(

It's a pity that their online store is a different company entirely. I found that out when enquiring about something a while back.

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Surely some of those "60 stores" will also include the branches they open on temporary leases over Christmas, for example the one in Bedford (which they also had on a temp lease last year at the other end of Midland Road).

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Yeah, hence drummond fo life, but Centrale, what a BRILLIANT idea that's turning out to be, little more that a massively empty walkway from the old C&A to the existing drummond.

Anyone know what the (shit) occupancy rate is? Cos it was like a fucking ghost-town when I was there at the beginning of december.

[edit]

Oh fuck, my BIL works at HMV!

It's a strange one, isn't it? You'd think that it'd be full of shoppers but yes even today it's relatively empty, compared to Whitgift Centre. It could be badly designed, as no big shop is going to put their store on the bottom floor (effectively the basement), are they? House of Fraser is the only big-ish store that has dared to go there, probably cos they couldn't get anywhere else (even H&M quickly moved out into Woolworth's former store when Woolworths went bust).

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Acquisitions I bet? The newer one in Croydon was a former Zavvi store that HMV bought up when they went bust.

Yeah, the big one in the Arndale used to be a Zavvi. Though even before then they still had the small one in the Arndale and the flagship one 2 minutes walk away. Odd.

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I think they will keep the one that used to have the dinosaur above it and will close the hmv next to the sex shop as its no one really bothers going that far down Croydon high-street unless they need to get something from maplins.

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I dunno though, you get significant amounts of people down that end as they all come from West Croydon bus and train stations. Not only that, but it's opposite Marks and Spencers and that's been there for decades. So it's not as if no one goes down there.

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HMV has been good for videogame trade ins. Normally always higher trade in price than GAME.

Well I hope the stores near me don't close as I have about £95 in store credit to use. Better use it asap I guess.

But yes, they seem to charge the normal RRP on most games, DVDs, Cds etc and when you can buy exactly the same thing off the internet for a lot less, it's no surprise they are struggling. The sales have been poor too. I've seen games in the 'sale' like Gears of War 2 for £24.99. Says it all really :facepalm:

Feel very sorry for the staff though who will lose their jobs - it happened to me as I was made redundant on 31 Dec. Not a nice feeling.

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Much as I hate HMV it would be very sad to see pretty much the last high street music retailer close down. I hope they can at least keep the Oxford Street store open as it's just about the only largish music store in the country.

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