HMV, in a bit of bother.
An analyst at Conlumino said that the breach “raises very real concerns about the future of the business.”
“The unfortunate fact remains that HMV’s proposition has become increasingly irrelevant in the modern retail landscape,” said Joseph Robinson. “While the retailer has been proactive in attempts to evolve its proposition through a greater focus on technology, this does not constitute a persuasive long term plan for survival.”
“Furthermore, the Christmas period is unlikely to bring much respite; high consumer demand for technology will be directed towards online and specialists high street operators such as Curry and Apple, while HMV has the grocers to contend with in attempting to pick up the dregs of demand for physical entertainment products.”
The company reported a £36 million loss for the six month period ending in October.
That’s down on last year’s £50 million, although HMV’s debt has risen from £163 million to £176 million. HMV blames a quiet summer in terms of release schedule, and points to falling UK software sales – down nearly 30%.
HMV is one of the last true multi-media high street chains, and although their prices are often way off target in certain areas, it would be a massive shame for them to face any long term financial issues, as that would leave little more than online retailers and specialists like the already battered GAME alongside the supermarkets.