News: HMV close Rotherham store
Struggling retailer, HMV has closed their Rotherham store at Parkgate Shopping.
The group operates through over 200 stores, predominantly in the UK, specialising in music, film and games. The Rotherham store also contained a concession from mobile phone operator, Orange.
In 2011 the operating group, which has since sold Waterstone's bookshops, announced that it would close 60 stores as a result of declining sales in "challenging trading conditions."
A notice on the Rotherham store stated that the closure is due to the lease expiring.
For the full year to April 30 2011, group sales had fallen 7.4% and like for like sales were down 11.0%. Profit before tax and exceptional items declined by 61% to £28.9m. The board stated that "operating and financial performance this year has evidently been both disappointing and unsatisfactory."
In the run up to Christmas, total sales for HMV Retail were down 19.4%, including like for like sales down 11.9%. A recent financial update indicated that "For the year to 30 April 2012, HMV expects net debt to be £175-180m and in expectation of continuing challenging conditions believes it is now likely to deliver a slightly larger loss of around £10m for the full year."
In January, the group were forced to arrange new banking facilities, giving the retailer "significantly enhanced headroom" for this year.
HMV Group website
Images: hmvgroup.com
The group operates through over 200 stores, predominantly in the UK, specialising in music, film and games. The Rotherham store also contained a concession from mobile phone operator, Orange.
In 2011 the operating group, which has since sold Waterstone's bookshops, announced that it would close 60 stores as a result of declining sales in "challenging trading conditions."
A notice on the Rotherham store stated that the closure is due to the lease expiring.
For the full year to April 30 2011, group sales had fallen 7.4% and like for like sales were down 11.0%. Profit before tax and exceptional items declined by 61% to £28.9m. The board stated that "operating and financial performance this year has evidently been both disappointing and unsatisfactory."
In the run up to Christmas, total sales for HMV Retail were down 19.4%, including like for like sales down 11.9%. A recent financial update indicated that "For the year to 30 April 2012, HMV expects net debt to be £175-180m and in expectation of continuing challenging conditions believes it is now likely to deliver a slightly larger loss of around £10m for the full year."
In January, the group were forced to arrange new banking facilities, giving the retailer "significantly enhanced headroom" for this year.
HMV Group website
Images: hmvgroup.com
4 comments:
HMV, Game, etc all need to change their business models to survive. If I can buy the same item from Amazon as in HMV for £10 cheaper, I will, and it's arrogant to expect otherwise. This means that HMV have to give me something approaching £10 value just for walking in the store. If this isn't possible then the business needs fundamental change. One thing's sure, it's their complacency in the face of the obvious that's caused their dismal results.
The group posted an update today:
"Looking forward into 2012/13, reflecting the disruption to GAME plc and the changed nature of our relationship with key music and film suppliers, the company is confident that it will return to profitability. At this stage we expect profit before tax to be at least £10m for 2012/13 (analyst consensus for 2012/13 is a profit before tax loss of around £5m)."
Tom, I hope for the sake of the staff that they can make a viable business. I don't feel positive about that they can after so many years of watching them heading to earth with a bump.
New stores will be open at rotherham retail shopping centre starts soon
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