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HMV Struggling As Sales Fall Over Summer, But Plans Continue

HMV is struggling as sales fall over summer, but plans continue to offer iPods , tablets and headphones in an effort to mave away from CD and DVD sales.

HMV is struggling as sales fall over summer, but plans continue to offer iPods , tablets and headphones in an effort to mave away from CD and DVD sales.

The entertainment group HMV is going ahead with plans to overhaul the technology that it is offering in its stores, despite sales dropping over the summer, in the hope that ,long term, the sales will improve.

HMV is now devoting about 25 per cent of its floor space to electronic gadgets such as tablets and iPods and headphones, which have begun to increase in sales in the six stores which have been converted so far, moving away from the sale of CDs and DVDs. Over half of the stores, 150 out of 256, will be changed over in the near future, as the company tries to improve sales which have dropped due to the decline of people buying actual CDs.

However, HMV will be closing about 60 stores to conserve costs of about £10 million, and has already closed about 30. There was a slump in profits to £2.6 million from £67.3 million from the beginning of this year to April, due to the easy availability of digital downloads of music, and supermarkets offering bargain prices too.

HMV has already sold Waterstone’s, its book chain, and 121 stores in Canada to Hilco UK, a firm which specializes in failing retail stores, so it could refinance £220m of its debt.

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Anthony has more than 35 years business experience as an employee, manager, entrepreneur, and consultant. A Trivia buff, Anthony is one of the major contributors to the General News category, too.

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