Industry analysts have spoken out over the implications for Britain’s High Streets and shopping centres of HMV’s demise - the latest in a series of humbled former retailing giants.
Speaking to The Times Neil Saunders, managing director of retail consultancy Conlumino, said: “While many failures of recent times have been, at least in part, driven by the economy, HMV’s demise is a structural failure. In the digital era where 73.4 per cent of music and film are downloaded or bought online, HMV’s business model has simply become increasingly irrelevant and unsustainable.”
Matthew Hopkinson, of the Local Data Company, commented: “If you take it into account what we've seen in Jessops, all happening within one week, there are going to be some major holes in the high street. And HMV particularly has some very large stores – and obviously over 60% of their stores sit within shopping centres. So shopping centres will be hardest hit.”
Andy heath, chair of UK Music, told Radio 4’s Today programme:” There is still significant and very large demand for people wanting to buy music in the high street. I think there is a place for a chain but the chain needs to be focussed in a way HMV was unable to be focussed. Going into administration gives HMV an opportunity for a substantial and decent rebirth."
The guardian meanwhile carried the words of Gregory Mead, chief executive of music analysts Musicmetric, who said:
“The changing face of music, and that of digital technology, has overhauled the way we interact with records, means that artists can engage directly with fans, meaning physical retailers have needed to evolve as well. While previously it was all about CD releases and the Sunday chart show, now the most important thing is knowing where your fanbase is and what drives them so you can market to them directly and maximise revenues from a myriad of sources.”