HMV Calls in Administrators

 
Despite a recent major refit, and attempting to diversify its offering into modern-technology and gadgets, HMV has of this morning ceased trading and confirmed that it will call in the administrators. It is perhaps no surprise – it was recently reported that HMV was close to breaching banking covenants, and it was well known that the company has spent the last few years attempting to compete with cheaper on-line rivals – the main of course being Amazon. Ironically though, HMV fortunes had actually increased at times after the demise of competitors such as Woolworth’s, but does this finally signal the end of the High Street?

HMV represented a significant proportion of its market – close to 40% of the entire physical music market isn’t to be sniffed at, nor is around 30% of the market for DVD’s. However, HMV having traded for 91 years becomes the second high-street retailer to fall by the wayside in 2013 – Jessops having closed its doors last week after 78 years of trading. It is of course only 2 months since the demise of Comet, as well.

Amazon and its questionable tax-strategies are able to compete at a price, and with a level of convenience, that cannot be matched by business who occupy expensive buildings up and down the country – but HMV’s market share does demonstrate a place for the High Street.

Perhaps we are therefore not looking at the death of the high street, but rather a change in who actually occupies it?

Whatever the answer may be, with HMV potentially out of the way will it signal an increase in Amazon’s prices?

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