HMV poised to reclaim top spot from Amazon
Published 01/09/2014 | 08:26
HMV is poised to reclaim the title of Britain’s biggest entertainment retailer less than 18 months after it was saved from oblivion by the turnaround specialists Hilco.
The high street stalwart will surpass Amazon as the biggest retailer of CDs and DVD in the near future, according to its chairman Paul McGowan, chief executive of Hilco, who was quoted in the Mail on Sunday.
He said: “It’s only a matter of time before we overtake Amazon.
“HMV is re-engaging with music shoppers and getting them back into shops. This is about being an authority in music, not selling music as a commodity.”
Mr McGowan said HMV had been profitable for Hilco “since day one” of the takeover, which in recent years has also preyed on Habitat and Clinton Cards.
Hilco bought HMV out of administration in April last year, saving 2,500 jobs and 125 of the chain’s 400 stores.
It said like-for-like sales were up 13.8pc in the past two months, including a 21pc increase in CD and vinyl sales, and a 6pc rise in sales of DVDs.
Last month HMV reclaimed second place in the British entertainment retail market, according to figures from Kantar Worldpanel. The market research firm said the retailer was reclaiming customers fro supermarkets.
Fiona Keenan of Kantar Worldpanel said: “HMV appears to be making a comeback on the high street following a strong performance over the past quarter. It has increased its share of the entertainment market from 13.6pc to 14.7pc – a significant improvement on its record low of 10.7pc following its administration last year.”
HMV continued growth comes alongside a 3pc increase in total sales of physical music in the year to June.
Hilco said part of the chain’s recent success had been driven by a focus on live appearances by artists. More than 300 events have been held, including personal appearances from Ed Sheeran and Megadeath.