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HMV Going Into Administration
With the news that HMV is expected to go into administration today and become the latest casualty in the battle between online and traditional stores, Rupert Eastell, Baker Tilly's Head of Retail , says this is yet another blow for the UK High Street:
"As one of the best-known household names, the closure of HMV is likely to damage consumer confidence even more in the coming months.
"However no one can say that this has come as a surprise. The failure of the only surviving national music store comes hot on the heels of the administrations of a list of established retailers including Comet, JJB Sports, Clinton Cards and, most recently, Jessops.
"There is a clear parallel here with the failure of Jessops where, put simply, the consumer no longer wants to buy what they sell. Coupled with a falling number of shoppers with less cash to burn, and intense competition from the internet and supermarkets, I don't think for one moment that HMV will be the last household retailer that will fight to stay alive in 2013. The bad news is that this year is predicted to be just as bleak, if not bleaker than the last 12 months, and to ride out the storm successfully companies really need to be fit for purpose and evolve with the times. They simply cannot just rely on outdated and broken business models.
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