Tuesday, January 15, 2013
Breaking News: HMV closing down
HMV is the latest casualty in this crisis and the biggest since Woolworths closed its doors. The demise of HMV although it has been probably helped by the current crises can be linked to a number of other reasons.
Basically the chain has been very slow to react to changes in customer wants. Less people were demanding physical copies of cds and dvd. In todays digital era, people are choosing to download music and movies so the brick and mortar formula was out dated.
Another issue that affected HMV might have been the lack of direction. It is very difficult and time consuming to change the product focus of a successful store and HMV has just run out of time. There could have been a number of other opportunities which HMV could have worked on, including partnering with famous artists and produce clothing wear, become sole retailer of a number of upcoming gadgets etc. However this could now be history.
This puts more pressure on the economy as these lost jobs are added up to the jobs lost in the recent collapses of camera trader Jessops and electrical retailer Comet that together cost more than 8,000 jobs.