British Video Association calls on HMV administrator to keep stores open
The British Video Association (BVA) has reacted to the news that the HMV Group has entered administration by asking the administrator Deloitte to recognise that there is still value in the high street retailer.
Lavinia Carey, director general of the BVA, claims that while internet sales have clearly dominated the video market in recent times, HMV has held on to the same market share in volume sales over the past decade.
"HMV is the last specialist video retailer and BVA data shows that it has held its share of around 16 per cent of volume sales over the last 10 years, while total market sales rose in the same period from 169 million units to 179 million units," she said in a statement sent to Pocket-lint.
"Meanwhile, internet sales have gone from 8.5 per cent to 30 per cent in 2012 but in terms of consumer spending on discs, the internet has taken a larger share of the value, with 19 per cent to HMV and 36 cent online."
It may be a smaller amount taken by HMV in preference to, say, Amazon, but the pot has grown. At least in video - DVD and Blu-ray - sales. It is for this reason that the BVA calls on Deloitte to realise that HMV could still be run as a profitable venture.
"The BVA’s year-end statement also highlighted that over £0.5 billion was spent by consumers on digital video services," Carey added.
"The BVA sincerely hopes that while in administration the value of this important retailer can be realised so that a re-structure will enable the best-performing stores to continue trading and maintain consumer choice and access on the high street."
HMV went into administration last night (14 January) with shares suspended from trading on the London Stock Exchange with immediate effect. More than 4,500 jobs are at risk if the chain is closed completely.
It is the latest in an expanded line-up of big-name retailers to enter administration, including Play.com, Jessops, Comet and, formerly, Game. The last was eventually sold off and maintains its high street presence, but not before many of its stores were closed and numerous staff made redundant.
Pic: (cc) Basher Eyre