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.
sg
my nearest HMV is like 30 mins away, otherwise i’d trade there instead of game or cex which is like 15 mins away. =p
TSBonyman
Hopefully they’ll keep going, for someone like me who usually shops at retail, they’re nearly always €10 cheaper than Gamestop on new releases.
Sitorimon
Its a shame, I actually quite like HMV but yes their customer service really veers from one extreme to the other. I’ve had some really clued up people and when LBPK came out I was told there were 12 copies on the shop floor and that “if I looked hard enough I’d find them”. I persevered only because I had a HMV token and after speaking to 3 different people they eventually pulled 12 copies out of their stockroom…
Amphlett
Well, well, well. Their share price has been plummeting since 2005 and then 2009. They last paid out a dividend at the start of January 2011.
With peaks of 272p per share in 2005, they now stand at a “DEF CON 5” warning price of just 2.49p! Looks like investors have seen this demise for a number of years.
Amphlett’s investment guidance – Buy a time machine and SELL everything several years ago!