UK entertainment retail giant, HMV, have disclosed a £121.7 million loss. That’s a huge swing after the previous year’s profits of £49.2 million and represents a like for like sales drop of 11 per cent. This announcement leaves HMV’s total debt up to £170.6 million.
HMV have blamed an underperforming games market for the drop with competition from high street and supermarkets indicated as possible reasons for the decline.
All this comes against the backdrop of some significant refinancing and the promise of far reaching change for the company who have shed Waterstones and HMV Canada from their group to stanch those losses. They’re expected to close stores and restructure their retail space to include more technology as well as focus on live music and ticket sales.
Is this another indication that the supermarket price wars are really hitting specialist retailers hard? Will HMV’s new focus still have so much room for the games market which they focussed on quite heavily for the past couple of years?