HMV confident in future despite Christmas slump
HMV Group chief executive Simon Fox has said the company remains confident about its "future prospects" despite its retail arm recording an 8.2% like-for-like sales slump over the vital Christmas period.
HMV: chief executive confident despite Christmas slaes slump
In its trading update for the five weeks ending 31 December, issued today (9 January), the company revealed total retail sales were down 16.9% year on year and total group sales were down 16.6%.
As in December, its update bore the disclaimer that "the economic environment and trading circumstances create material uncertainties which may cast doubt on the group's ability to continue as a going concern in the future, and these uncertainties continue".
But Fox sought to accentuate the positive, saying: "The continuing actions to focus the business and to expand our technology offering are beginning to show through.
"We are seeing a combination of a slowing of the decline in music and film, and acceleration in the growth of technology. Undoubtedly, trading conditions and the consumer environment remain challenging, but we remain confident in HMV's future prospects."
HMV Retail is attempting to combat the migration of its consumers to the web by repositioning itself as a technology specialist.
In the 144 stores refitted with an extended technology range, like-for-like technology sales increased 51% in the five weeks to 31 December, marking an improvement on the average increase of 42% since the respective store refit dates.
HMV Group says its review into the potential sale of HMV Live, its live music division, is "continuing to make good progress".
HMV Live softened the sales decline of the overall group by recording a 1% like-for-like sales decline for the five weeks ending 31 December.
However, total sales for the live music division increased 13.3% as a result of the company acquiring new venues, compared to the same period last year.Follow Matthew Chapman at @mattchapmanUK
This article was first published on marketingmagazine.co.uk
Latest jobs Jobs web feed
- Account Director- Exciting Online Content Marketing Company- Up to £70,000 plus OTE Cedar Scott Up to £70,000 basic (up to £90,000 OTE) plus share options, Central London
- Category Manager Pearson Competitive salary & performance related bonus & benefits, Central London
- Global Product Manager Evans Taylor c£50k - c£60k p.a. plus car, bonus and benefits, North East of England or Central London
- Retail Marketing Manager - Maternity Cover Tottenham Hotspur Football Club Up to £35,000 pro-rata, Tottenham and Enfield
- Brand Manager Radisson Blu Edwardian, London Competitive , South Kensington, London
- ACCOUNT DIRECTOR/SENIOR ACCOUNT DIRECTOR - BTL/SP/Brand Experience - London - £45 - £55k plus bonus Judi Patton £45K-55K plus bonus, London/Greater London
Integrated digital marketing offers huge opportunities to engage, servic...
Mobile marketing is coming of age, and the pace of change is now exponen...
With UK consumers spending an average of £1,083 a year online, int...
Conversational Mobile Marketing: Engage Customers and Empower Advocates (Expert Reports) External website
The pressure is on for marketers and mobile operators to embrace a strat...
As a nation, the UK is media and technology obsessed with over half of t...
All customers have the potential to become your brand advocates, driving...