UK retail giant HMV is set to close 60 stores (including some Waterstones bookshops) over the next 12 months, it's said.

The move follows poor Christmas sales in the UK, with numbers for the five weeks ending January 1 down ten percent year-on-year and store sales falling 13 percent.

The severe weather and "challenging trading conditions" were blamed for a slump in game, DVD and CD sales.

Currently DVDs account for 34 percent of HMV's business, music 22 percent, games and technology 19 percent and books 25 percent.

Yesterday, trade body UKIE revealed that the UK video games and interactive entertainment industry generated £2.875 billion in revenue during 2010, down from £3.311 billion a year earlier.

Yesterday's VAT increase won't come as good news to the troubled post-Christmas retail sector either, with GAME already reporting a rise in some game prices.

http://www.computerandvideogames.com/ar ... ?id=282113

I'm assuming the books percentage is incorporating some Waterstones figures, cos if not, it's no wonder they're struggling

I think that lack lustre games might be one problem. Piracy might be another, but HMV rely on discretionary spending and that is still a vulnerable sector with the cutbacks.

I think the proliferation of "home entertainment" products, including films, music and games in the supermarkets, not to mention the rise and rise of Amazon and Play.com are more to blame for the demise of HMV. Yes, disposable income has taken a hit, but HMV has been performing poorly for years.

Always sad to see a bookshop like Waterstone's closing.

Yes competition from Amazon Play and eBay must be taking a big chunk of their business. It must be years since I went into an HMV. They were over priced when I was last there.

I'd be surprised if our local one closed. It's always busy in there and there's no real competition in the town centre.

+1, only ever got 1 bargain when I was in there, and that was years ago. I used to go in there for "obscure" things that no-one else could/would get hold of, as HMV would normally order it in; however since Amazon have greatly expanded their catalogue I don't even need to do that any more...

It's been over three years since I've stepped foot in HMV to buy something (I use our local one as a walkthrough).

It's been over a year since I've stepped into any sort of similar shop like zavvi/virgin etc.

I occasionally buy a cheap book in it if there's no queue, but everything else can be delivered to my door for cheaper usually

That right there is the issue.
I can't remember the last time I went into HMV, Zavvi et al.
I have a thing called an 'internets' instead.

Yes and it is more convenient as well. Add in parking or buses and it becomes less cost effective unless you are buying a lot.

The expense and difficulty of parking is the main reason I never go into town. The bus is even more expensive, costing nearly as much as a taxi!

If there was a HMV next to my local out of town supermarket, then I might pop in. But there isn't, and for anything popular the supermarket would probably have it anyway.

And probably cheaper as well.

+1.

Round where I live, it will cost £1.80 to go into town via bus and another £1.80 to come back. £4 for an "all-day" ticket. Add to that having to wait for buses, crowded buses, slow. Compare this to £4 for "all-day" parking (about five hours' worth) city centre car parking. Hence it's already easier to go by car.

Now, to go into town for games/music/videos is a bit pointless when I can sit at home in my boxers and order my stuff. The most I'd have to walk is to the letterbox!

If I park a ten minute walk outside the town centre the meter price is only £1 for four hours, £2 for all day. Much better than the bus fares.