Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/122387
r e t a i l i n g t o d a y a new master storied british music chain hmV is pulled from the brink by hilco By Bennett Voyles H MV has been haVing trouble staying on the dance floor. but had the british music and entertainment chain responded more quickly to changes in consumer behavior, it could have thrived in today's digital environment, observers say. since going into administration (britain's equivalent of Chapter 11) in 118 SCt / m a y 2 0 1 3 January, nearly half it stores have closed down. To date, out of 230 stores, 116 remain open. U.K. restructuring firm hilco struck a $50 million deal last month to take over the retailer, pledging to revive it through the sale of music and movies. hMV's collapse followed closely on the heels of Jessops, a chain of 187 camera stores that closed in January, inflicting another jolt on landlords already suffering in britain's lacklustre economy. a fixture of british life for over 90 years, hMV (the acronym derives from his Master's Voice, as the company was originally called, after an iconic painting of a dog looking down the horn of a gramophone) was one more retail casualty of the rise of digital media. "hMV's collapse has been brought about by the rapid transition of entertainment to, firstly, online retail and, secondly, digital downloads. This is a trend that is impacting entertainment retailers worldwide as companies such as amazon.com, apple and netflix eat into market share," said Lisa byfield-green, an analyst at U.K. consulting firm Planet Retail. some 83 percent of british consumers now shop online for their music or movies, according to a Planet Retail survey. hMV did make efforts to adapt — by changing its merchandise mix, expanding its offerings to the likes of headphones and iPads, and experimenting with clickand-collect services combining online purchase with in-store pickup — but was unsuccessful, says byfield-green. all that will be dropped by the new owner, which will focus on music and movie sales, as well as the sale of branded clothing. hilco followed a similar strategy