HMV Vs Amazon: It's Going Down

The high street music retailer is back on top form.

Image via Wikimedia

HMV has recently announced a remarkable turnaround in profits. The high street retailer revealed that it is now close to snatching the crown from the UK's biggest music and DVD retailer, Amazon. The writing seemed to be on the wall for HMV. Only last year, it was rescued by restructuring expert, Hilco, having performed a similar job in reviving HMV in Canada. Hilco helped saved almost 3,000 high street jobs in the process, with major music labels and film studios also stepping in to assist by agreeing new supply terms with HMV.

Paul McGowan, HMV's chairman, told Thisismoney.co.uk that the commonly held view that digital was killing the physical "was never true." He also revealed that "only 30% [of music buyers] switched to digital with 70% of the market is still physical", and that it's only a "matter of time" before HMV reclaims the top spot from Amazon.

Sales at HMV stores have increased by nearly 14% in the past two months, including a 21% increase in sales of CDs and vinyl records. Fortunes shouldn’t be isolated around the fact that customers are buying CDs again, it’s also a great story of a retail giant learning from past mistakes and evolving strategy to again connect with modern consumers.

Early on, Hilco pinpointed several areas in which HMV will look to transform, including but not limited to improving stock, listening to local demands and keeping alive the tradition of in-store gigs. It would also seem that constant millennial reports on the "death of the album" as a digestible format, along with the forever impending "death of vinyl", now appear greatly exaggerated.

The niche vinyl market is being kept alive and major labels are listening to those that hold dear the sentimental value in physically owning a record, complete with artwork and extras. Despite the undoubtedly positive figures from HMV, it's worth noting: Amazon are yet to publish their fiscal year profits. 

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