HMV - Could it have been saved?

sandin

It was slumbering giant that simply did not move quickly enough with the times - but could it have been saved?

I was in their Newbridge store before Christmas and th whole designa nd the staff style was very much targeting a 15-25 year market, yet the average age of the customer there was 40+.

IMO, they needed to understand that the young customer had entirely moved online for music / videos and they shoudl ahve remodeled their stores and staff for a 40+ customer with a relevant change in offering.

The stores were large enough to have a good book selection, a cafe, music selection, dvd selection and a sales area for phones and tablets.

Their selling point should have been "knowledge of the new generation, made simple for all" and have instore learning desks, internet access and specialist staff there who could do one on one teaching of new technologies for a small fee. The upside would be that that person would then buy the tablet / smart phone and other stuff from them and have confidence in them.

In a totally different area, Specsavers are a great example. Free or €15 eye examinations with a fully qualified person whereas the real cost is probably €50-€60. But the optician gets a guaranteed salary and the custoemr has to buy their specs in specsavers.

Damn, I'd love to take the project on, but don't have that much cash and extremely happy in current business.

But if you had the task to turn it around, what would you do?

The Apprentice

Yes well i think most definetely

Games similar business model of Psychical Purchases has seen a dying death over the last 2 years and although one might assume its the "Recession" were in, but i think as you state above a shifting culture or trend perhaps...
People are shifting online with downloads, and anyone that needs evidence of this need to check out the Steam Platform online, there are close to 5-6 Million people playing online at any one point in time..

The Brick and Mortar store will ALWAYS be around, but i feel only in the Big Centres with high Footfall will become any way profitable. THe brick and mortar physical generation are dying and need to come onboard with online purchases. Small towns with 10-20k Demographcis wont have demand for these type of stores, similar with extravision - hmw - or any of these types of stores.
Although the forecasts were there 10 years ago, NONE of the above seem to be embracing online sales whether it be a netflix alternative (xtra vision) (SKy-player - Absolutely amazing)
Strategists for these multiples need a good slap, and needs i agree a good interjection of diversity..

You mentioned Tablets, Pcs, Mobiles, Pehaps an Apple Section where sales have been phenomenal in every Hmv in Ireland - Its not that hard to think of 10 areas of diversity that could drive footfall into brick and mortar stores.
Teaming up with pixmania, Komplett with Affiliate sales, Pick up point for Pc Perhiples - No sales/customer service like petes Parnell street just pick up point and pay like argos.

Frustrating to think that Hmvs business model hasnt changed in 50 odd years but yet its customer has, another point youve mentioned above. Kids dont have the disposable income any more, also the fact its free to anyone that has found a google search bar. And point of note that its the old fogies that are struggling to let go of the Pyshical cd, part of our generation haha !!

Tablets are the way forward, i do believe a similar Setup mentioned close to the SPecsavers example could work with some of the Mom and Pop that purchase for Kids.. 500euro for 15mins work
People like me know we can purchase online for 100euro less but my mom wouldnt dream of not speaking to someone local for some strange reason.. Again, back to the demographic on who.s buying tablets for who.. (Not much RRP change in IPADS online)

Frustrating - but i do know there is some tightening which will see closures on Non performing stores, the larger ones may still be profitable, dependant on if creditors work and what kind of debt they are in !!

Twoandahalfmen

Easily spend less
Take in more

ted1

You can't judge a stores performance from before Christmas they get once a year shoppers in then. Perhaps for the other 11 years they get the young mo commitments cash rich 25 year olds there targetting

buck65

Large corporate retailers are slow and inflexible and the horse had bolted long before the alarm bells went off with HMV and the music industry in general.
The independent stores that survived won't be sorry to see the back of HMV and their ilk as they tried to force them out for years.

MonkstownHoop

their online presence was terrible, they should have focused on online sales/ downloads

highlandseoghan

They never changed with the times which was a major issue for them. Like previous posters have said they could have done really well bringing in tablets and other gadgets with staff that could teach people about it and explain the difference in simple terms. Another huge factor for hmv was the large supermarkets selling games, cds and dvd's cheaper than hmv. that had to be a huge blow for them. I also think there stores were very large with a lot of space being wasted.

betonit

slightly off topic... why dont they honour vouchers. These are creditors that are not looking to get cash. Isnt the stock obsolete anyway im sure there's an accounting reason valuation etc, but its unlikely the stock will be turned to cash .

ted1

betonit wrote: »

slightly off topic... why dont they honour vouchers. These are creditors that are not looking to get cash. Isnt the stock obsolete anyway im sure there's an accounting reason valuation etc, but its unlikely the stock will be turned to cash .

There unsecured creditors, once in ainistration they must follow the legal method. Pay tax man, pay banks, pay creditors who have a charge against assets then if there is anything left pay unsecured creditors. Stock can be turned into cash, it'll be sold off for what price it will achieve