Thread: HMV in dire straights

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Post by wolf359 January 19, 2013 (51 of 74)
My local independent B&M store is concerned by the demise of HMV, basically he told me that HMV accounts for between 25/30% of sales and when they go it places the distribution chain at risk similar to what happened when woolworth went. He is worried about his suppliers going down and taking his business with it.

Post by chenzl January 19, 2013 (52 of 74)
wolf359 said:

My local independent B&M store is concerned by the demise of HMV, basically he told me that HMV accounts for between 25/30% of sales and when they go it places the distribution chain at risk similar to what happened when woolworth went. He is worried about his suppliers going down and taking his business with it.

An article in the Gramophone on the issue...

http://www.gramophone.co.uk/blog/the-gramophone-blog/the-demise-of-hmv

Post by wolf359 January 21, 2013 (53 of 74)
According to BBC news Hilco is front runner to take over rhe HMV chain article here http://www.bbc.co.uk/news/business-21118711

Post by lennyw January 21, 2013 (54 of 74)
It's already over. Does anyone really go to chain music stores anymore? Good luck throwing good money after bad to Hilco, or whoever take them over. Perhaps Terra Firma are interested...

Post by hiredfox January 22, 2013 (55 of 74)
In the UK it is always going to be difficult for UK companies to compete with US sources of SACD simply because of the 20% VAT imposed on UK companies but not in the case of US sources because of the $20 value import waiver.

Stores also have running costs that on-line only retailers do not so it will be good to see any business model for HMV that can level the playing field sufficiently to make physical disc sales viable again on the high street. The Music companies imply they will help but how? With special pricing for HMV and a premium for on-line retailers? I am not sure that is even legal in a free market.

Personally I do not accept that high street stores are a 21st C anachronism. There are a few independent classical music stores scattered across the UK now and they seem to sell enough to survive just by having a comprehensive and up-to-date range of new and recent releases on offer - and with SACD being prominent.

One should not underestimate the attractiveness and convenience of a purchasing decision based literally on having a disc you are looking for in your hand as opposed to being clicked anonymously from a wish list through the post. A small premium for that thrill is something audiophiles will willingly pay so HMV should not chase the 5 for £20 skinflints who were described so aptly by Oscar Wilde... or the spotty faced youths who think classical means a pop album without swearing or sexual innuendo form the '80's.

...and more than a few on here should look to their own consciences as well

Post by sylvian January 22, 2013 (56 of 74)
lennyw said:

It's already over. Does anyone really go to chain music stores anymore?

Me not!

Post by old-dog-newtricks January 22, 2013 (57 of 74)
hiredfox said:



so HMV should not chase the 5 for £20 skinflints who were described so aptly by Oscar Wilde...

Exactly! HMV went after the wrong customers. They chose the pop CD buyers when that market was falling by 20% per year and virtually ignored the increasing sales of SACD among other things.
I am sure John is also right when he suggests it is illegal to offer different discount levels except when linked to a volume purchase. A discount can be offered because a company is 'mail order' but that discount should be the same as all other mail order houses. Similarly with retail. If the retailers offer to buy a huge volume, extra terms can be offered.

Post by hiredfox January 23, 2013 (58 of 74)
sylvian said:

Me not!

As there aren't any you really don't have a choice.

Post by old-dog-newtricks January 25, 2013 (59 of 74)
More talk about Hilco and HMV today. Hilco 'rescued' HMV Canada (actually bought it from HMV when the uk company needed cash to stay alive.) The question is what is HMV in Canada like now? I understand that quite a lot of branches closed (including a major one in Vancouver) and that the music software has been reduced to maybe 25% of total floor space. There is reported to be an increase in Vinyl though. Hilco are also talking to the receivers (liquidators) of a recently collapsed retail Camera chain in the uk with a view to merging into the HMV outlets. Nothing very encouraging for us. I wonder if we have any Canadian site members who could enlighten us about their local Hilco HMV?

Post by Yoropiko1 January 25, 2013 (60 of 74)
old-dog-newtricks said:

I wonder if we have any Canadian site members who could enlighten us about their local Hilco HMV?

My best guess is it must be doing pretty well if Hilco is in the postion to buy the UK arm of HMV. Whatever radical changes it made when Hilco bought HMV Canada must have brought about profitabilty, and no doubt we will see the same happen to the newly revamped UK HMV. I for one am happy that HMV will still be on the high street all be it re fomatted in some way or other.

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