HMV woe continues with another slump in sales
Struggling music stores chain HMV today posted a further slump in sales in its first-quarter as it grapples with fast-declining CD and DVD markets.
The 90-year-old group, famous for its Nipper the dog trademark, said today sales at stores open over a year plunged 15.1% in the 18 weeks to September 3. That compares with a like-for-like sales fall of 14.5% in the year to April 30.
Total retail sales, including the impact of 29 store closures, fell 21.8%. Including the firm's HMV Live business, the group's total sales declined 19.4%.
"Overall, our plans for the Christmas trading period are on track," said chief executive Simon Fox.
HMV has issued four profit warnings this year as a downturn in consumer spending exacerbated the long-term challenges of intense competition from supermarkets and internet retailers as well as the increasing popularity of digital downloading of music and books.
In June the firm secured its immediate future with a £220 million refinancing deal with banks. It has also sold the Waterstone's book chain and its Canadian arm to cut debt.
HMV has been shifting its emphasis from CDs and DVDs into the growth markets of new technology products, such as MP3 players, headphones and tablet computers, as well as live music and event ticketing.
The firm is spending £6 million refitting 150 stores to focus 25% of selling space on fast-growing portable digital products and accessories.
