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HMV: Uk's Largest Music Retailer In 2012

853 Words4 Pages

In 2013, HMV fell into administration but the brand has since recovered. It became the UK’s largest music retailer in 2016, by exceeding Amazon on physical music (Gumble, 2017). The company has grown its share by 3.1 percentage points of the physical entertainment market (Kantar WorldPanel, 2016) and has attracted 41.000 new shoppers. At the beginning of 2016, HMV recorded a 2% rise in sales of video games, DVDs and CDs. At the end of the year, the market share of HMV was about 16.3% (Statista, 2016). As a comparison, Amazon market share in 2016 was about 20.4% (appendix 1). However, the retailer turnover was £325 million in 2016, down from £366 million in 2015 (Wood, 2016). Operating profits decreased from £15.2 million to £11.7 million during 2016 and HMV reported a pre-tax loss of £8.8 million as the result of additional spending. Moreover, the music retailer has seen its spend share percentage fall by 0.7% in the 12 weeks to December 2016. The current performance …show more content…

It has also created a free music app directly after its failure. HMV has also reduced the number of its stores, from 239 to 128 today. The company has focused on differentiation by creating an improved in-store environment. In 2016, for the first time, vinyl sales have outperformed digital downloads. Today there is still an opportunity for physical music retailer as one in four people is still buying CDs. Its brand image is a strength as it is seen as an iconic music retailer. Therefore, today HMV performance is better than it was in 2013 as the brand has learned from its previous mistakes. However, in December 2016, the sales of video, music and gaming has fallen within the physical entertainment market (Kantar WorldPanel, 2017). It can suggest that this market is in jeopardy and that consumers are increasingly choosing to buy online rather than

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