Media downloads cause plummeting sales at HMV

6 July 2006 15:03 GMT / By Amber Maitland

HMV's sales report today shows that the high-street retailer is taking a hit from online sales.

A report in the Independent reveals that like-for-like sales have gone down 17% in 9 weeks leading up to 1 July.

In order to stem the tide of falling sales, HMV is unrolling a new look for its stores across the country, after successfully testing it in two locations.

The new look incorporates a simpler store layout with bigger aisles and major price cuts. Chart CDs will cost under £10, while DVDs will be just £14.95.

Online sales at hmv.co.uk have doubled in the last year, and Waterstones, which is part of the same group, is getting its own online store this autumn.

Pre-tax profit for the whole group had sunk by 21% in the last year to April 29.

Carl Symon, the Chairman of HMV, said to the Independent, "The most popular entertainment and book titles were impacted by rapidly growing competition from supermarkets, while a pronounced shift in consumer preferences to buying online put pressure on the deeper range of product".

Full tags

Audio, Online, Music downloads, HMV