Why hmv is successful

With the crucial Christmas gifting period now just around the corner, HMV will be hoping for a suitably festive end to the year. For more stories like this, and to keep up to date with all our market leading news, features and analysis, sign up to receive our daily Morning Briefing newsletter. Your site will load in 16 seconds. Related Content Can vinyl production keep up with growing demand? HMV revenues slashed in half by the pandemic.

According to a recent report by PWC , more than 17, stores closed in Great Britain last year with the severity of the impact of the pandemic being displayed by John Lewis — historically one of the most successful department store businesses in the UK, confirming plans to permanently close eight more outlets after its first-ever full year loss, resulting in these abrupt shifts leaving many retailers scrambling to reach customers through other channels.

In June, Disney announced plans to close all but two of its UK stores with a shift in focus towards e-commerce. Just weeks later, HMV announced a contrasting business model with plans to open ten new stores, including a London flagship site. But the question is: Who has got it right? Many businesses will now be asking themselves which model they should look to invest in if they are to succeed in a highly saturated market. All successful business leaders will need to consider the state of the current market to keep pace with changing demands and in this current environment, the success of a business depends entirely on how willing they are to diversify and adapt to certain requirements listed below.

There has been a clear shift in consumer habits in the last few years, fueling the growth of the e-commerce market. Now, most consumers are focused on instant accessibility. They want a tailored shopping experience at the touch of a button. For a business to succeed, they now need to allow their customers to decide on when, where and how they shop.

The year-old high street model is associated with high staff and rental costs and unaffordable business rates, whilst overheads in the digital world are much lower. In a financially challenging year for all sectors, this optimizing of spending is vital for success. Whilst brick-and-mortar brands have had trouble keeping up with the rapid shift online, we are unlikely to see the end of physical stores. And nor is the high street going to disappear overnight. The retailer still owns indie store Fopp, which has also been taken over by Putman, but only a handful of Fopp shops remain open.

Having suffered tumbling profits and two administrations in the past decade alone, HMV has had to scrap its way to its th anniversary on the British high street. Debenhams and HMV will both shutter stores this month as the retailers grapple with rising rents and business rates.

Music sales hit their highest level since in the UK last year, despite sales of physical CDs continuing to plummet. Site powered by Webvision Cloud.