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HMV hauling itself up by the bootstraps

Posted in Media, Digital, Branwell Johnson, Latest reporters' blogs July 1st, 2008 by Branwell Johnson

It’s good to see HMV posting a profit and Nipper (the little dog emblem for those too young) must be bounding with delight.

Scratch a little deeper and we find that the computer games are mainly responsible for the uplift. Sadly, the nation has not suddenly re-embraced buying music CDs and won’t do so again in big numbers.

Of course, HMV must survive by any means necessary and if games are where it’s at –21 per cent of sales are now accounted for by “Games and Technology” – then that’s where the retailer must concentrate firepower. Higher margins per unit presumably too.

Zavvi, once Virgin Megastore, seems to be making headway on the high street as well. Maybe these stores are demonstrating that there is still, among a certain demographic that hopefully includes both young and middle-aged, the need for “the thrill at the till” of browsing and sharing a shopping experience.

After all, online shopping is a solitary activity, you don’t go with your mates and then retire to a Starbucks or pub afterwards to look at your purchases, peruse and chat about them.

So if chief executive Simon Fox delivers sustained growth over several quarters he can consider himself heir apparent to Stuart Rose of M&S as turnaround king of hopeless causes.

To read the related news story visit mad.co.uk