It's a reflection on the economic climate, how relevant are hmv and is the high street worth saving? How can retail stores compete with online stores, the high street will soon be gone.
Sad but was going to happen sooner or later. Always seemed over priced in the last 3 or 4 years. Was looking at a blu ray boxset the other day online... hmv 35 quid, amazon 17 quid. They didn't stand a chance with that pricing strategy
would be gutted if they disappear, love going and trying to find obscure films i've been trying to find for ages and getting them on dvd. I think theres something really romantic about that that's lost in the internet age. It's like getting a vinyl record.
The issue for the high street now is will it be able to survive,there is just as good a choice on line and the way people shop has changed,people check on line now for the cheapest price,there is know a shopping experience at home. The Cost of rent for shops like Staples,HMV,wh smiths and others will be a deciding factor in survival. HMV doesn't surprise me. Pubs closing, food bought online,newspapers now on the tablet? It's an evolution of our time.
Their pricing strategy was insane. You could get decent films for £3 and some boxsets for a tenner, but then they had pther boxsets for over £50 and some proper toilet films could be £15. Point Break had a re-release recently and they priced it at £17.99. 18 quid! It was £3 in my local store on Saturday (plus 25% off). Their marketing strategy is similarly dreadful, allowing themselves to take advertising money for big releases because it's easy and failing to acknowledge that a new David Bowie album doesn't need HMV adveritisng it all over the shop, it's the lesser-known stuff that you need to generate interest for. They also treat their staff terribly and have an unbelievable rate of turnover. I like the place and I'll miss it but they dug their own grave even working within the difficult times
I think theres something really romantic about that that's lost in the internet age. It's like getting a vinyl record.
But that is how buying and also selling has changed, i know sell all my vinyl online and it reaches a much bigger market place, the irony is that vinyl still sells and i also sell cd's.
I watched an interview the other week with the CEO of Myer, a massive Aussie department store, he said that big stores have got to re-shape their business and make a visit to their store an 'experience' rather than just a transaction.
Of course people are always going to be attracted by price but price is not the sole determinant, do people really want to spend their lives sitting in front of the computer ordering stuff and then waiting for it to be delivered?
Humans are social creatures, we need interaction and involvement and the retailers that encourage this and attract customers to shops will be the ones that survive, a good example of this is our DIY store Bunnings (equivalent to your Homebase) running free DIY workshops on weekends with in-store discounts available to attendees.
Similarly, our local Harvey Norman (like Dixons) also runs free computer classes and information sessions for people wanting to buy computers/TV's, they really put themselves there as a partner for customers rather than just a sales point.
The biggest factor here though is the Internet business model, we are actually doing some consultancy at work for a south-east Asian government that is looking at how to handle the Internet retail economy, governments round the world are getting mighty pissed off with Amazon etc and are looking to make them pay their way.
I think theres something really romantic about that that's lost in the internet age. It's like getting a vinyl record.
But that is how buying and also selling has changed, i know sell all my vinyl online and it reaches a much bigger market place, the irony is that vinyl still sells and i also sell cd's.
I Specialize so i have a niche market.
really agree, especially as I love my cinema, even if i see a film i've already seen online, i'd buy it if i see the dvd of it. The only reason I watched it online in the first place was because i couldnt find it in shops. Things like the re-master of Godard's A bout de souffle having just been released finding its way into HMV stores is something i love. One thing i'll forever miss is independant dvd rental stores. I've only been in one the entire time i've lived in london the past 2 and a half years in brick lane.
Hmv online offers are more expensive than amazon Hmv haven't been able to adapt. Less innovation and not price competeitve. The larger Firms are now owned by venture capatilists,they know how to raise money but no clue about customer service, have we forgot what the shop is there for. Maybe the stores with good customer service who will pay the staff more will stay around?
Is the reason that their offers are not as good as Amazon because they actually pay the proper corporation tax? Got to be a very large part of the reason and it's killing High Streets and putting thousands out of work.
Here we go .. all the chat about 'corps tax' etc etc ... the government LOVES cheap goods .. it stops us all from plotting revolution and keeps us indoors grooving to cheap rubbish music and dodgy movies .. Amazon will be the kings of porn in 10 years time .. wait and see .. all the shopping malls will be converted to 1/2 way houses for the homeless thrown out of work and unable to afford mortgages or rent .. cheer up !!
We will be are own downfall, people want everything dirt cheap which puts jobs at risk so now there will be another four thousand people unemployed and on the dole which in time will rise taxes but hang on a minute Amazon don't pay tax!!!
I always buy my stuff from shops for two reasons. 1 - easier if I need to return the goods. 2 - even though it costs me more it keeps people in jobs
Its the same thing as Tesco's selling cheap booze, all they want to do is see your local pub shut / turned into a Tescos Local, wipe out the competition , then you can charge what you like, and we all end up paying more for it long term, don't get me started on B&Q! :-0
Sh!t.......i got quite a few quid in vouchers to spend!!
THIS! Think we're screwed mate!!
Cant find anything to say they are closed and not honouring vouchers, just that they are considering administartion or am i being nieve? off shopping tomorrow!!!
In addition to online competition retail in the high street has been hit by property rentals which have not taken into account the new realities of the high street, so as sales have gone down rentals have gone up.
Slightly different scenario but my local dry cleaners has moved from Brockley to Honor Oak after 15 plus years because his landlord insisted in increasing brentr by £800. As a result the landlord has an empty outlet, but for these larger stores moving is not an option.
The vouchers will probably be turned off immediately as the shops open tomorrow. The administrators will enforce rules including no loyalty cards, gift cards and unwanted returns.
Comments
How can retail stores compete with online stores, the high street will soon be gone.
The Cost of rent for shops like Staples,HMV,wh smiths and others will be a deciding factor in survival.
HMV doesn't surprise me.
Pubs closing, food bought online,newspapers now on the tablet?
It's an evolution of our time.
But that is how buying and also selling has changed, i know sell all my vinyl online and it reaches a much bigger market place, the irony is that vinyl still sells and i also sell cd's.
I Specialize so i have a niche market.
I agree Badger, but not a good one!!
Of course people are always going to be attracted by price but price is not the sole determinant, do people really want to spend their lives sitting in front of the computer ordering stuff and then waiting for it to be delivered?
Humans are social creatures, we need interaction and involvement and the retailers that encourage this and attract customers to shops will be the ones that survive, a good example of this is our DIY store Bunnings (equivalent to your Homebase) running free DIY workshops on weekends with in-store discounts available to attendees.
Similarly, our local Harvey Norman (like Dixons) also runs free computer classes and information sessions for people wanting to buy computers/TV's, they really put themselves there as a partner for customers rather than just a sales point.
The biggest factor here though is the Internet business model, we are actually doing some consultancy at work for a south-east Asian government that is looking at how to handle the Internet retail economy, governments round the world are getting mighty pissed off with Amazon etc and are looking to make them pay their way.
I love going into HMV to browse and buy CDs. Where can I do this now? It's just not the same doing it online.
this
I Specialize so i have a niche market.
really agree, especially as I love my cinema, even if i see a film i've already seen online, i'd buy it if i see the dvd of it. The only reason I watched it online in the first place was because i couldnt find it in shops. Things like the re-master of Godard's A bout de souffle having just been released finding its way into HMV stores is something i love. One thing i'll forever miss is independant dvd rental stores. I've only been in one the entire time i've lived in london the past 2 and a half years in brick lane.
Hmv haven't been able to adapt.
Less innovation and not price competeitve.
The larger Firms are now owned by venture capatilists,they know how to raise money but no clue about customer service, have we forgot what the shop is there for.
Maybe the stores with good customer service who will pay the staff more will stay around?
Amazon must be loving this!
Why would I bother
I Wouldn't buy anything from amazon.
I always buy my stuff from shops for two reasons.
1 - easier if I need to return the goods.
2 - even though it costs me more it keeps people in jobs
Slightly different scenario but my local dry cleaners has moved from Brockley to Honor Oak after 15 plus years because his landlord insisted in increasing brentr by £800. As a result the landlord has an empty outlet, but for these larger stores moving is not an option.