HMV plans 10 new High Street stores

Music and entertainment retailer HMV is planning to open 10 new shops this year as it continues putting faith in the High Street.

The firm closed a number of stores, including its landmark shop on Oxford Street in London, after falling into administration two years ago. Canadian music retail executive Doug Putman bought the company, and is now searching for a new London flagship site. He believes stores still have a future because people “love going out shopping” and like to actually touch and feel things. Online shopping can’t replace that.

Mr Putman thinks that more people will come along with different ideas and try to open up different stores. He remains optimistic about the future of HMV, and business on the High Street because it is “something so special”.

The plans come as HMV commemorates its first store opening in London 100 years ago. They are currently taking a “very hard look” to find the best site to replace the flagship.

Although Mr Putman does say the long-term viability of the new stores depends on how the government deal with business rates, which are reduced at the moment until April 2022. He will not sign “any long-term deals” because there is still a lot of uncertainty in the retail sector.

HMV is looking at a combination of things when deciding where to expand with their new sites. Some locations just aren’t viable for their stores because of the rates. The upcoming review on business rates will have an impact on both the firm and the British High Street in general.

Meanwhile, the business did well online during the pandemic, helping it to offset in-store sale losses.

Shift to online

Many retailers have seen the effects of the shift to online shopping on their stores. Music shops in particular have suffered the impact of the move to digital over the years. Challenges from downloading and streaming add to the usual troubles also faced by others.

Over the past 10 years sales of CDs have dropped, and Sainsbury’s supermarket announced earlier this month it stopped selling them and DVDs. More customers are turning to online music and films. However, last year, CD sales were still worth £115m and vinyl continues to see a resurgence.

Despite the challenges, HMV still continues to trade on our High Streets after a century, which is a lot more than can be said for most other retailers. The company’s survival comes as a surprise in a digital world. It has beaten the odds to remain a bricks-and-mortar retailer of physical media. The brand’s success stems from its focus on staying relevant to fans of pop culture.

While many question the need for a High Street post pandemic, HMV’s owner has faith in it at a time of change. Many UK retailers suffered following forced closures during the pandemic, with huge drops in sales, and a significant increase in online shopping. And the worst is not over yet. Thousands more High Street closures are predicted as firms recover from losses and loans.

The government need to act now to help save the UK economy. Top of most retailer’s requests is a change to business rates. The public also need reassurance at a time when many are anxious about the end of legal Covid restrictions.

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