HMV latest retailer to go bust…

… but unlike Jessops and Comet, it may survive the experience.   HMV has 239 stores and 4,000 employees – so it has a significant high street presence.  But like the other retailers it has been suffering from declining demand, as more and more customers purchase their music online or through downloads.  However HMV may still have a future, albeit as a smaller chain in prime locations.  This is because the music industry is very keen to ensure that physical distribution of their product is still made possible through stores.  It is concerned that Amazon and other online retailers could have too much market power.  So to help the administrators ensure some part of HMV survives the suppliers are likely to offer favourable trading terms to keep the chain going.

Source: BBC News

This entry was posted in Chap 02 Winning Customers, Sector: Retail and tagged , , . Bookmark the permalink.

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