HMV chain to appoint administrator

[Sensoria]

http://www.bbc.co.uk/news/business-21021073

What a sad day for music. Woolworths, Our Price, Virgin and now HMV. Who's next? The High Street will never be the same again, that's for sure. No more record store tours all over the city and meeting some rather fab folk in there. Cities will be even less soulful for that now. Sweet memories.

[Neil Kelly]

The writing has been on the wall for years though. Even Universal has been helping them for years financially. Part of it is their own fault. Even without Our price, Virgin, Tower, Woolworths, WHSmith selling music, Boots selling music, Zavvi or whoever, their prices were still ridiculous. I (like many) buy all my (new) music from hmv.co.uk, or amazon.co.uk. Instore is just not worth it. Parking, petrol, queue's, useless staff, no stock etc. I used to go 2-3 times a week upto about 7 years ago. Nowadays once a month at most and almost always come out empty handed. And as an example of prices, the Duran remastered deluxe editions with DVD's that came out about 5 years ago which were around £14 from hmv.co.uk are all £35 each instore. Who is their right mind is gonna pay that? The last time i went in there about two weeks ago i was looking for Swing out sister's 'It's better to travel' (Deluxe edition) as i read on the internet that someone had seen it in the sales for £3. No sign of it. When i eventually got to the counter the assistant hadn't heard of the group (of course) and i had to repeat it twice. Aside from this i had been approached on the shop floor about ten minutes earlier to see if i needed any help which of course i said no too. When i was queueing to pay there was about seven customers waiting one of whom was quite vocal in the fact that no one was serving, one man was on the phone behind the tills and a further three were standing around on the shop floor. Someone even shouted no wonder you're going out of business lol. Useless.

[Frank_Chickens]

Completely agree Neil.

Their prices have always been extortionate (£15 for a CD when it's £7 online? No thanks) and whilst they did have a nice line in music, games and books ten years ago things have moved on and they haven't; they still think that people will pay their prices despite the variety of much cheaper choice available on the Internet.

When the concert venue arm of the company was sold off that was them done and they've been holding on since then. Add in the fact that £10 million worth of vouchers are now useless and you've got a potent mix on your hands.

Blockbusters have just gone into administration too. Wouldn't be surprised if Next, Argos and Waterstones joined them in the Summer.

[Sensoria]

Yes, I agree the price to get there (parking, petrol...etc.) is way too expensive indeed. But that's up to the councils who are still charging for high street car parks, whereas supermarkets get free car parks. The real high street destruction I would say.
Street shop prices are another matter and take a lot of consideration. Street shops are paying the rent et al through the price of the items they sell too which is why it is often higher than at those who are relying solely on the Internet (Amazon et al). Bosses greed, wrong business moves/policies, economic climate change over the past several years and new consumers' shopping habits, all play a major role in their closure too. No doubt about it.
When I said I'd miss them getting closed I meant the loss of that magical feeling of browsing through the carts, that painful pleasure of finding that long "lost" item, seeing a lot of CDs et al in the shop windows...etc. etc.
And besides, I'm always more up for a physical copy rather than a digital download. There's many reasons for that but they are stuff for another topic.
I feel bad as over 4000 people will now lose their jobs too.

@Neil Kelly: Mind you, when I went to one of their shops over 10 years ago and asked the woman behind the counter to see if they had the then newely released ABBA "Ultimate Collection" CD, she said she never heard of them. I pissed myself laughing. I was in a hurry and had no time to browse through the carts. I'd understand she never heard of the likes such as Cabaret Voltaire, Clock DVA...etc. But ABBA?!?! Oh, come on!!! Ha ha ha.

Hence, read this now: http://www.music-news.com/shownews.asp? ... emID=61852 !

Quote:
"(...)A report in The Sunday Times suggests that Universal Music, Warner Music and Sony are set to cut the price of CDs and DVDs with HMV getting favourable credit terms to help it through its cuttent crisis.
It seems that Universal and Warner are eager to structure a deal in order to keep HMV and stop cut-throat pricing from supermarkets and online stores(...)"

[Frank_Chickens]

Not surprising that the major labels are clubbing together to protect their own self interests since there isn't any viable options on the high street.

High street rent has always been expensive which is reflected in the prices companies charge for items but in this day and age they have compete not only on price but convenience as well and must offer something different to the Internet that will bring the customers back, something like in-store appearances or special editions of items that are only available for that chain.

Major labels usually don't like limiting supplies when sales on the Internet are so good but now they've got a vested interest this may well change.

[Neil Kelly]

Yeah Frank and Sensoria all what you state is true. I wonder when HMV was the last around why these efforts you talk about which i've also heard weren't put in place. I think if the HMV's debts could be worked around and the online business kept as it is and these cheaper prices were in play then HMV could became a very viable business once again (unlike Blockbuster). It's funny that for each person who states that HMV should've remain specialist and not delved into DVD and Games, another will state that they didn't move with the times. But i would have to question wasting space on shelves like the afforementioned Duran box sets at £35 a pop. NO ONE is gonna buy them. I blame everyone personally from record companies, radio stations, and shops themselves. Everyone got to greedy.

[Neil Kelly]

And it's funny that you should mention personal appearances. I was due to go to Adam Ant signing his new album in HMV Oxford Street tonight but it got cancelled. I ordered the album from hmv.co.uk two weeks ago and haven't even had a confirmation of it being sent yet and the site went offline on Friday. Now here's the problem. HMV closed in large part to Supermarkets. I went into THREE branches of Tesco today including a massive branch. Not one stocked the Adam Ant album so i remain empty handed. Already waited 18 years for said item! I placed an order for it with Amazon before i'd even set foot in the third branch. After hearing my comments the dozey shop assistant asked if there was any particular reason that Tesco wouldn't stock the item (like bad language). I said no. She said they may stock it if it hits the chart. I replied it won't chart cause no-one is stocking it! Catch 22. No wonder Adele stays in top 40 albums for 2 years. No one is willing to push the boat out. He was the biggest music star in this country 30 years ago and hasn't even released as album in 18 years. I despair. The industry is doomed! (Sorry for rant and going off-topic somewhat).

[Frank_Chickens]

Another thing about HMV I don't know if it's true or not but wouldn't surprise me is that the staff get 40% discounts; and that HMV are still making a profit when a £10 CD is sold to the staff for £6.

If it is then it would explain their predicament.

[Sensoria]

Yes, HMV should've moved with the times indeed. The thing they did with Get Close and Pure HMV on-line services to compete with iTunes, Napster and others was a clever move but it didn't pay off, unfortunately. They should've gone the Amazon way 10 to 15 years ago already. They could've predicted it going, couldn't they? Having twice as less stores around the country that would cut the rental costs down and keep on working to a physical copy buyer pleasure regardless of the future happenings is another thing they should've taken in concern. There'll be always the people who'd buy a physical item rather than a digital download every time and they should be given a choice too. (I certainly do not want to live in the world where there's no choice.)
In-store appearances, signing the items and special editions of items that are only available for that chain (Well said that, Frank!) would certainly bring the costumers back indeed.
The on-going thing with gift vouchers is a total madness. And gift voucher law must be changed. Restructuring specialist Hilco took effective control of HMV, after buying their debt (http://www.bbc.co.uk/news/business-21141209).
It's so sad that supermarkets like Tesco don't stock the items by some of the biggest names in music of the yester year like Adam Ant et al. I don't undermine Adele's talent but she bores me to death. Every time I turn the radio/TV on I just can't escape her songs/videos at all. That overexposure must stop!
I just deeply hope you'll get the Adam Ant CD in the end, Neil! [:)]

[Sensoria]

Good news: HMV branches sold to Hilco, saving 141 branches!

http://www.bbc.co.uk/news/business-22040237

[:)]

[Sensoria]

Another good news! HMV is on course to overtake Amazon as the UK's biggest music and DVD retailer, and is getting people back in stores!

http://www.theguardian.com/business/shortcuts/2014/sep/01/hmv-stores-overtake-amazon-uk-biggest-music-dvd-retailer

[obs]

the mini gigs pull in extra punters and sales. They are also good news for record labels too, says HMV, with live performances able to make the difference between a No 5 album and a No 1.

A friend who worked at a bookstore pretty much said the same when an author is there who you can talk to about their book.

Good news indeed.

[Frank_Chickens]

Another good news! HMV is on course to overtake Amazon as the UK's biggest music and DVD retailer, and is getting people back in stores!

http://www.theguardian.com/business/shortcuts/2014/sep/01/hmv-stores-overtake-amazon-uk-biggest-music-dvd-retailer

Nice to hear.

[Neil Kelly]

Pity there is nothing online still. With Sainsbury's cheap CD prices gone since January i have no choice but to use Amazon for everything all year

[Sensoria]

And so HMV overtook Amazon as the UK's biggest music and DVD retailer!
This is the latest news!
Woo-hoo!

http://www.telegraph.co.uk/finance/news ... ailer.html