Will HMV be able to change direction?

HMV's xmas figures are in, and sales are down 16.6%

HMV has been in stormy waters for some time, with store closures last year, but the new strategy of turning the brand into a technology retailer and not a film and music one appears to be working.

I guess its a bit like a supertankers trying to change direction, will it manage it in time, or will it follow Blacks and La Senza into administration

BBC News - HMV reports Christmas sales slump

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it's not gonna work... virgin megastore would be a better comparison than blacks and la senza...

media retailer is no longer a viable business model due to the fact that media gets downloaded these days instead of bought from shops.

they need to come up with a totally different kind of product to sell, by doing so completely change what HMV is...

given that it is a public company, it is virtually impossible to completely reinvent itself, it is just a matter of time before it goes bust... it's already living on borrowed money/time

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I agree. The industry has changed now and people simply do not go to the high street to buy things that they can buy easier and cheaper online. In addition to HMV not being able to survive I would also cast a serious amount of doubt about the long term sustainability of another of the major UK high street players - W H Smith. There is only a certain amount of time they can survive on selling stationary etc. All of their major products ie books, music, DVDs etc are all going online. I think the British highstreet in 5 years time will be a very different place.

yes i agree, 10 years ago i was a frequent visitor of w h smith's, whether it was to buy stationary for school or books... but i have not gone into any w h smith stores in at least 7 years...

both stationary and books are cheaper online even with shipping

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We purchased some skull candy headphones from them online for an xmas pressie for the kids, they never turned up, we ordered them late November and to this day no correspondence.

My advice hmv have a big shiny shop in major towns with big shopping centers, get rid of the local ones like mine and go the way of play.com

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Its a shame, but I think Bobo's right, WH Smith will be next.

Maybe the age of the CD is over, and the kids nowadays just download them?

Personally I like to have a rummage through the CD's, and will occasionally pop into HMV, but I'm not exactly a target consumer

Suppose we will have to explain to our kids about this old fashioned thing called a record, which we used to save up our pocket money and buy

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Interesting. Is the internet the sole cause of these companies demise, maybe coupled with an ongoing depression?

I wonder, if High St chains close, how will people touch and feel goods? Also, they get 'eyeballs' from passers by.

Maybe you could have a small showcase shop backed by internet distribution?

Or is the internet the future, full stop?

I think that's been half the problem, we're all guilty of it, we go into these big stores, touch and feel our intended purchase, make sure we are happy, then search online and order from an online retailer who has lower overheads and can sell cheaper.

Only when all the chains have gone bust and there's no where to touch and feel will we start moaning. Would you really want to buy white goods or big items purely from online reviews and pictures?

Closing online tax loopholes like the Channel Islands will help, but how can any chain compete with an online only retailer?

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When the high street stores are closed, we can still feel and touch what we want at friend's who's got them

physical stores can't compete with online stores because there is a huge cost factor with physical store that will never ever exist for online stores:
rent + salaries of shop attendants

the more physical stores you open, the more rent and shop attendants you have to pay... online stores are international stores by default without needing any rent or shop attendants...

physical stores will die out... maybe fashion stores have a chance because people have to try clothes on to make sure they are the right size and they look/feel good.. but it's just a maybe.. because the biggest growth at all major fashion retailers is their online operation.

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I think companies like this are dinosaurs due for extinction, I don't know if anybody else has commented on Blockbuster, how do they still have a business. It took them forever to respond to businesses like Love film (Who I've used and are crap)