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http://www.bbc.co.uk/news/business-12117510

Music and books retailer HMV Group has said it expects to close 60 stores in the next 12 months and warned profits will be at the lower end of forecasts.

The firm said business at its stores - which include Waterstone's bookshops - was hit by the severe weather and "challenging trading conditions".

Sales for the crucial five weeks to 1 January were down 10% on last year, due to a 13% slump at its HMV music stores.

HMV also said it was struggling to avoid breaching the terms of a loan.

"The board now expects that compliance with the April covenant test under the group's bank facility will be tight and is taking further mitigating actions during the next four months to address this," the company said in its trading statement, which was issued a week earlier than planned.

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There is no way HMV and Waterstones can survive this climate. With Play.com offering free delivery and discounted prices, and Amazon offering a whole range of options for any single items, such as buy used or new etc. It was only a matter of time before the axe would fall.

I personally think local authorities charging excessive fees for in town parking has some contributory factor as well.

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Their prices on video games are out of touch and unrealistic.

I'm talking £40 for a year old game you can get for £30 at game/gamestation or £20 online.

The bad pricing reminds me of woolworths before they went bust - trying to be a jack of all trades means you suck at all bits of it.

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Easy to say now, but after going into HMV on Saturday I thought to myself that I should short these into bankruptcy. Should have acted on that :(

Massive stores in prime locations, all of the staff, and CD and DVD sales must be on their knees.

Edited by Kyoto

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I personally think local authorities charging excessive fees for in town parking has some contributory factor as well.

Nail on the head. Parking charges are a disgrace, and the fines for overstaying are an abomination.

It's rare that I bother going to a High street any more.

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Their prices on video games are out of touch and unrealistic.

I'm talking £40 for a year old game you can get for £30 at game/gamestation or £20 online.

The bad pricing reminds me of woolworths before they went bust - trying to be a jack of all trades means you suck at all bits of it.

Comparing them to Woollies is very harsh. I think HMV have pretty good management who did a great job of turning them round from the jaws of Bankruptcy 4 years ago. They did so on added value and product expansion, their problems relate to the current time, added value is a no goer and they will no doubt go the way of the DoDo at some point, whereas Wooliies were just sh!t plain sh!t management, theyd had no focus for a decade before they went under and were surviving on air

Edited by Tamara De Lempicka

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I'm surprised they are still going to be honest. They should have got out when Branson did, his timing was on the money, in more ways than one.

Edited by MrFlibble

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Quite.

The whole business model for what they sell seems to have moved on: People now either buy this stuff on the web for the keenest price or they make an impulse buy at the supermarket or petrol station (etc).

Plus the youth who used to be the primary purchasers of music just arent that into it any more, havent been for years.

The day, when I was a kid, that every market town could support half a dozen+ record shops are over.

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When will the penny drop that high street rents and rates need to drop? So many empty premises around on the high streets, and those that are filled are often charity shops, of the rest, the vast majority are the big homogeneous chains. Despite the current wows of the retailers, and the obvious pain the landlords will be feeling, I fear it will be some time before they realise the model is outdated. As for the local authorities and the parking and rates charges, I don't think they will ever learn.

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Quite.

The whole business model for what they sell seems to have moved on: People now either buy this stuff on the web for the keenest price or they make an impulse buy at the supermarket or petrol station (etc).

Plus the youth who used to be the primary purchasers of music just arent that into it any more, havent been for years.

The day, when I was a kid, that every market town could support half a dozen+ record shops are over.

When could any market town support that number of record shops? I can remember back to the early 70s and small none high street shops were still going bust back in the boom days of record sales (mostly 7" mind). Just curious.

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When could any market town support that number of record shops? I can remember back to the early 70s and small none high street shops were still going bust back in the boom days of record sales (mostly 7" mind). Just curious.

Northampton town centre used to have an HMV, Virgin, MVC, Our Price, Spinadisc (independent), a whole floor of WH Smith's for music.

Edit: And Woolworth's best floorspace was also dedicated to music.

Edited by thecrashingisles

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When could any market town support that number of record shops? I can remember back to the early 70s and small none high street shops were still going bust back in the boom days of record sales (mostly 7" mind). Just curious.

Sounds surprising, but I lived in a very small town which had 5 for the first 20 years of my life. Now down to 1.

They all turned into mobile phone shops.

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With the cost of doing business so extreme and getting worse year by year its hard to see what can survive besides big box retailers and government funded entities.

The discs will still be for sale, just within a big box retailer.

The name of the game is super volume, and spreading overhead costs over a large number of sales and products. It sounds like HMV was almost moving towards that putting books and records together. Throw in DVD's too. Still the big box has all that and 100's more product areas.

Look at all the smaller shoe stores that went under last year. You have to sell a lot of shoes to even cover the train costs of one managers meeting. And in Britain we like to do those weekly. Then there is upper management pay and benefits, and consulting costs.

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This is one of the few shops I consistently go in for a browse. I'll impulse buy some items if they're cheap, bargain DVDs for example, where the postage cost would prevent a decent overall price from amazon. Sometimes i pay over the odds for something for the convenience of having it there and then in preference to amazon if it's in front of me in the store. If they go that's a real disincentive for me to go into town at all.

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There is no way HMV and Waterstones can survive this climate. With Play.com offering free delivery and discounted prices, and Amazon offering a whole range of options for any single items, such as buy used or new etc. It was only a matter of time before the axe would fall.

I personally think local authorities charging excessive fees for in town parking has some contributory factor as well.

Agree.

HMV are a dinosaur. There is no place on most high streets for this kind of business. They are getting eaten alive by online stores, choice and prices. They will have to adapt or fold.

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Northampton town centre used to have an HMV, Virgin, MVC, Our Price, Spinadisc (independent), a whole floor of WH Smith's for music.

Edit: And Woolworth's best floorspace was also dedicated to music.

You are quite right ! I was thinking more of a "high fidelity" style shop (spinadisc) rather than a mixed retailers.

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When could any market town support that number of record shops? I can remember back to the early 70s and small none high street shops were still going bust back in the boom days of record sales (mostly 7" mind). Just curious.

Teenager in Colchester up to 84, moved to Guildford to go to uni, also spent a lot of time in Cambridge.So all these places had unis, 1 also had a garrison. so maybe just where I lived. All had at least 6 record shops.

Not coming back to HPC for a bit as it is Jurassically slow for me today.

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One factor is having the young generation with no disposable income. £20 pounds is a lot of money if your disposable income for the whole month is £100 pounds.

Young adults have always spent huge on music, but in the past many young adults made some real money like in union factory jobs.

The 'young' people I see who make a lot of money are people who finish off professional school and training, but by that point they are around 30 and sort of past that stage of their life.

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Whenever I have gone into HMV recently, the thing that puts you off buying stuff is the great long queues. The tills appear to be well staffed, and there are still great big queues of people getting whatever takes their fancy.

The problem must be at other stores.

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When will the penny drop that high street rents and rates need to drop? So many empty premises around on the high streets, and those that are filled are often charity shops, of the rest, the vast majority are the big homogeneous chains. Despite the current wows of the retailers, and the obvious pain the landlords will be feeling, I fear it will be some time before they realise the model is outdated. As for the local authorities and the parking and rates charges, I don't think they will ever learn.

The banks spent the last decade pushing them up - pumping property and retail (cause it had properdee linked to it).

Total insanity and the reverse of what retail neeeded - which was low rents to compete with online sales. M.A.D.

Local authority action is totally wrong too - You can buy some stuff from China and get it delivered (all in cost including the product) cheaper than an hour's parking.

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Better not be, I've got a £20 gift voucher.

THat reminds me of that Jaspe carrot line where he says , why send me voucher that I can only spend in one shop , when you could have sent a voucher with the Queens head on that I could spend in any shop.

D :0)

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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