More high street gloom emerged from the City this morning with a trading update from HMV Group (LON:HMV).
Revealing key metrics for the 18 weeks to September 3, HMV chief executive Simon Fox said that trends in HMV Retail “were broadly unchanged” during its first quarter. Like-for-like sales (which exclude sales from new stores and those that have closed down) declined 15.1 per cent, while total HMV Retail sales, which included the impact of 29 store closures, were down 21.8 per cent.
Including HMV Live – the group’s live music business – group total sales were down 19.4 per cent.
Amid the gloomy figures there were some positive signs. “In technology, like-for-like sales in our initial six 'Fast Forward' stores have continued to grow by over 100 per cent, and during the first quarter we have been preparing our enhanced technology offer, the benefit of which is not included in our first quarter,” said Fox. “The roll-out of these space changes to the majority of the 150 stores takes place during September, and is on track to be completed at the beginning of October.”
(Fast Forward is HMV’s scheme to boost retail sales by dedicating store space to technology accessories such as headphones and sound systems.)
Fox added: “HMV Live enjoyed a good summer festival season, with attendances up by over 20% on a like for like basis, and by over 30% in total, and on 6 September we successfully opened the HMV Ritz, a new 1500-capacity venue, in Manchester.”
HMV completed its disposals of HMV Canada and Waterstone’s during the first quarter, and it announced it had entered into revised term and revolving credit facilities of £220 million with its lending banks. Fox said that following these steps, the group is focused on its turnaround plans with its plans for the Christmas trading period “on track”.
Shares in HMV were up 0.62 per cent this morning at 6.54 pence each.