HMV going into Administration!?
It’s no surprise that HMV went into administration again this year, since its last one in 2013. Lack of customers, streaming services and games going digital. Many of these reasons relate to how we can enjoy our entertainment through our homes. All it takes is a touch of a button or our voices through smart home devices to use films and music.
Online vs High street
Music and high street stores used were the best place to find products years ago but now online shopping is becoming more preferred. Back in July of this year (2018), up to 51% of customers preferred to shop online compared to online. While a 1% difference doesn’t seem like much to some but an article by Fortune indicates that this trend has grown since 2014, indicating a trend of increased shoppers online over the years.
Why did this happen to HMV?
Services like Spotify also allow us to listen to our tracks without the need to purchase a CD. Other services like Amazon Prime and Netflix also mean we don’t need to buy DVD or box sets to watch our favourite series. Unfortunately, for HMV, these services offer much cheaper alternatives to entertainment. Obviously, CDs and Vinyls are good collectables but they’re more expensive than buying a subscription. Some music streaming services even let you stream for free, reducing the need to spend. Although, this usually this comes at a cost of listening to adverts after so many songs.
Less High street Shoppers
Streaming isn’t the only reason. The high street in the United Kingdom have seen a decline in shoppers. Online retailers like Amazon, mean you don’t need to leave your house to shop. Alternatively, many people use cashback sites which only allow savings when shopping online. Shopping in store isn’t really an option when considering savings and discounts.
Online Shopping is More prefered
However, HMV do have an online store. I do feel if HMV focused more on online sales and didn’t focus too much on that in store experience, they may have avoided going into administration. Other retailers, might want to take this with caution as more people choose to shop online than in store.
It is clear that high street stores are struggling with the amount of choice and convince of shopping from home is clear. Clearance sales from high street stores closing or going into administration does sound some bargains to buy but these stores offer us brand choices and shopping experiences. Supporting these stores are also equally important to make sure their survival on the high street. Other high street stores might want to consider changing their high street tactics too by focusing a bit more on the online audiences as more people choose to shop online than in store.
What do you think is causing high street stores to struggle? Feel free to discuss in the comments!
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