FEATURE:
After the Pandemic Is Over…
What Is the Future of HMV?
___________
THIS week…
PHOTO CREDIT: Leon Neal/Getty Images
I have reacted to a couple of music news stories that broke a little while back. Now that record shops are back and operating, they are seeing their loyal customer base return. Whilst there is not the usual influx and bustle one would normally see at record shops – because of social distancing and people feeling less comfortable spending a while browsing -, it is a relief that most record shops will not have to close – and many offer an online service, which has helped sustain them at this difficult time. Though I prefer independent record shops, I grew up visiting HMV for all my music needs. I was shocked when many of their stores were forced to close last year and the fortunes of the retail giant have dwindled over the past few years. Like so many businesses, HMV have struggled during lockdown, and I was worried that there would be closures and there would be more gaps on the high street! Luckily, it seems like HMV have grown in strength, and their new owner Doug Putman has helped turn around their fortunes. I think one of the problems with HMV is that they stock a lot of DVDs, at a time when streaming is taking over. The nature of what they sell and promote has come into question. I am glad that not only is there a sense of hope for the chain, but there might be a return to London for HMV – the flagship store on Oxford Street was closed last year, and it was a massive blow:
“HMV’s revival under new owner Doug Putman has taken a hit from the Covid-19 pandemic.
But with the entertainment chain now trading on the High Street again after the easing of lockdown measures, Putman is ready to look at new opportunities.
Last year he launched the HMV Vault store in Birmingham, the biggest music and entertainment store in Europe.
IN THIS PHOTO: HMV’s Doug Putman
However, the famous retail brand is still lacking a London flagship as it approaches its 100th anniversary in 2021. The historic HMV Oxford Street branch was shuttered last year, because of the high rents and rates.
“Birmingham has been great,” said Putman. “It was definitely the best store we opened up, it’s doing phenomenally well for us. We’re always talking about more London stores because we know we're really under-indexed in London.
“The problem is the [business] rates are just crazy. I know there's a [rates] holiday until April 2021, but what happens after that? So we're very cautious. We'd love to have a flagship in London and we'd loved to have a few more smaller shops throughout London. I think we're going to look at those, and if we can get the right kind of deal you will see us open more of those stores.”
In his recent Music Week interview, Putman spoke about the need for the industry and suppliers to support the chain. While physical music sales are now back up above 20% of the overall market, CD sales have seen a sharp downturn during the pandemic because of store closures and a lighter release schedule.
Putman has expressed his belief that the format has a future.
But he also acknowledged that HMV could expand its pop culture, apparel and merchandise business. Putman’s Canadian chain Sunrise Records is active in this area, while his family business is in the toy, games and gift sector.
PHOTO CREDIT: @okcdz/Unsplash
Putman is even considering open a separate retail brand – previous working title of Cherrybomb – to capitalise on pop culture sales.
“It's a unique time where suppliers are very aggressive on that pop culture side to do business with HMV, and also to grow their business,” he told Music Week. “So I think we should harness that and look at that. We probably do need more apparel and more of those things”.
It seems that, when it comes to the high street, it has been bad news for as long as I can remember. Although HMV is not exactly booming to the point where there will be no more store closures, it is a relief that they have been able to ride the COVID-19 tide well. I would like to see HMV back on Oxford Street, as there are so few bigger record stores in Central London, and the flagship store had a nice balance of vinyl, C.D.s, books and merchandise. I would say that the DVD side of things is a little excessive, and I think there is a chance to increase vinyl stocks and merchandise.
IN THIS PHOTO: HMV’s flagship store on Oxford Street/PHOTO CREDIT: Alys Key/PA
I know business rates and rents in Central London are insane, but I think HMV could survive post-COVID-19 because people will be keen to get out and buy music, and we are already seeing independent record shops survive and look to the future. Maybe we will not see the closed HMV stores reopen, but there is nothing to suggest that those already on the high street cannot grow larger, and there might be the opportunity for a few new stores open in cities like London, Manchester, and Birmingham. I do love independent stores, but it is a shame that chains like HMV are a rarity now – Our Price and others like them were part of my childhood that struggled as I got older. It is a strange time right now, so it would be foolhardy to say whether HMV will be okay and add new stores, but things aren’t looking too bad! Business rates will always be a barrier to real growth and success, and that is especially true right now but, looking to 2021, it would be wonderful to see more HMV stores open! Personally, I think DVDs will decline in terms of shop space, and there will be some rejigs and redesigns based on current sales and demand. In the last couple of years, there have been store closures for HMV and those who have predicted the chain’s demise and, whilst the latest news/developments do not signal a full revival and security-guaranteed explosion, it is…
PHOTO CREDIT: @jblesly/Unsplash
SOME much-needed good news.