Companies That You Expect to Disappear Soon

[DanDaDriver]

https://www.bbc.co.uk/news/business-46699290

HMV on brink of second collapse in six years

The music retailer HMV is poised to enter administration for the second time in six years, a move that would affect 2,200 staff at its 120 stores.

HMV's sales have been hit by competition from streaming services and online retailers.

The BBC understands the company could appoint administrators as soon as Friday.

In 2013, the chain was taken over by Hilco, who specialise in restructuring companies.

 

[deltic]

Given reports of sluggish Christmas sales I expect a rash of more failures in January

 

[johntea]

Not really a surprise, as not that many people buy CDs/DVDs/Blu Rays these days!

 

[Gemz91]

Always thought HMV must have been on borrowed time for a long time now. Their staff must thank their lucky stars every morning they wake up that they still have a job. Always a shame for people to lose their jobs, but it seems like its come full circle, with independent record stores seemingly on the up, where 20 odd years ago they were all closing with the likes of HMV, Our Price and Virgin replacing them.

 

[Typhoon]

Always thought HMV must have been on borrowed time for a long time now. Their staff must thank their lucky stars every morning they wake up that they still have a job. Always a shame for people to lose their jobs, but it seems like its come full circle, with independent record stores seemingly on the up, where 20 odd years ago they were all closing with the likes of HMV, Our Price and Virgin replacing them.

The dedicated collector may prefer the independent because they specialise in a particular type of music and/or have specialist knowledge (there seems to be so many more genres of music now); for the casual buyer, Amazon have cornered the market for convenience. HMV are in the middle and have probably only survived for so long because Virgin et al didn't! There are, of course, a lot fewer independents around of course, which helps the surviving ones.

 

[Barn]

The dedicated collector may prefer the independent because they specialise in a particular type of music and/or have specialist knowledge (there seems to be so many more genres of music now); for the casual buyer, Amazon have cornered the market for convenience. HMV are in the middle and have probably only survived for so long because Virgin et al didn't! There are, of course, a lot fewer independents around of course, which helps the surviving ones.

I agree. The one thing the high street can still offer (but generally doesn't at present) is thoughtful curation and recommendations. Amazon is great if you know what you're looking for, but bad for browsing and discovery.

 

[Bletchleyite]

I agree. The one thing the high street can still offer (but generally doesn't at present) is thoughtful curation and recommendations. Amazon is great if you know what you're looking for, but bad for browsing and discovery.

That's true of most things, but what people need to pack in doing is researching at bricks and mortar shops then buying online, as what they're doing is freeloading on the high cost personal service.

 

[Busaholic]

That's true of most things, but what people need to pack in doing is researching at bricks and mortar shops then buying online, as what they're doing is freeloading on the high cost personal service.

I was a bookseller - how do you prevent this happening?

 

[Gemz91]

That's true of most things, but what people need to pack in doing is researching at bricks and mortar shops then buying online, as what they're doing is freeloading on the high cost personal service.

On the flip side of it, not music or films, but I've often seen clothes I've liked in a shop but theyv'e not had in my size. But when I've got home I've gone on the stores website and ordered the clothes in my size there. Had I not been in the shop, I would have never gone on the website.

 

[Dai Corner]

On the flip side of it, not music or films, but I've often seen clothes I've liked in a shop but theyv'e not had in my size. But when I've got home I've gone on the stores website and ordered the clothes in my size there. Had I not been in the shop, I would have never gone on the website.

A better run shop would have checked stock at their warehouse and offered to have your size delivered to the branch or your home the next day and ensured a sale.

 

[deltic]

That's true of most things, but what people need to pack in doing is researching at bricks and mortar shops then buying online, as what they're doing is freeloading on the high cost personal service.

I have done the opposite once - showed the assistant a book on Amazon and asked if they had it in stock - they were rather surprised I then went and brought it. Brought one too many books on Amazon unseen and been disappointed when it arrived

 

[pemma]

I was a bookseller - how do you prevent this happening?

You can't do that in Argos.

Don't book shops have a tradition of sealing up their expensive reference books to prevent people using a bookshop as a library?

 

[pemma]

The dedicated collector may prefer the independent because they specialise in a particular type of music and/or have specialist knowledge (there seems to be so many more genres of music now); for the casual buyer, Amazon have cornered the market for convenience. HMV are in the middle and have probably only survived for so long because Virgin et al didn't! There are, of course, a lot fewer independents around of course, which helps the surviving ones.

HMV own FOPP. They were late in to the digital market and ended up acquiring 7digital and rebranding it as HMV digital.

 

[pemma]

A better run shop would have checked stock at their warehouse and offered to have your size delivered to the branch or your home the next day and ensured a sale.

Does that work for everyone? If you had taken a day off work to go Christmas shopping you may not be able to go back the next day or been at home the next day.

 

[Dai Corner]

Does that work for everyone? If you had taken a day off work to go Christmas shopping you may not be able to go back the next day or been at home the next day.

Ok, how about delivery to a workplace or a collection point? Anything to stop a customer walking out of the shop after seeing something they wanted but not buying it.

 

[pemma]

Always thought HMV must have been on borrowed time for a long time now. Their staff must thank their lucky stars every morning they wake up that they still have a job. Always a shame for people to lose their jobs, but it seems like its come full circle, with independent record stores seemingly on the up, where 20 odd years ago they were all closing with the likes of HMV, Our Price and Virgin replacing them.

Don't forget MVC and Music Zone were responsible for buying up independent chains as well. Music Zone acquired Omega Music - the shop where the Charaltans met, which was owned by the man who went on to manage them. The shop interior changed from a geeky futuristic interior to the bog standard look every Music Zone shop had. It's now an O2 store, having previously been a discount shoe retailer.

 

[Busaholic]

You can't do that in Argos.

Don't book shops have a tradition of sealing up their expensive reference books to prevent people using a bookshop as a library?

Not us independents ! Some reference books might have come sealed, but what do you do when someone asks, reasonably enough, to see inside one? Okay if they then buy it, but if you get stuck with it... Can't afford to have a 'browsing' copy, which still has to be paid for.

 

[furnessvale]

On the flip side of it, not music or films, but I've often seen clothes I've liked in a shop but theyv'e not had in my size. But when I've got home I've gone on the stores website and ordered the clothes in my size there. Had I not been in the shop, I would have never gone on the website.

However, I doubt the shop gets credited with the sale.

 

[ShwervinMervin]

However, I doubt the shop gets credited with the sale.

That's right.

 

[Gemz91]

A better run shop would have checked stock at their warehouse and offered to have your size delivered to the branch or your home the next day and ensured a sale.

I do agree with you there, that the one sales assistant in the area I was browsing looked completely disinterested in actually assisting me, so I just left with out speaking to her. On the downside, it's the second time in just over a week I have gone into the shop and ordered the item online later, each time costing me a £5 delivery fee. So I have ended up paying £10 more then if I was to have bought them instore.

 

[Dai Corner]

I do agree with you there, that the one sales assistant in the area I was browsing looked completely disinterested in actually assisting me, so I just left with out speaking to her. On the downside, it's the second time in just over a week I have gone into the shop and ordered the item online later, each time costing me a £5 delivery fee. So I have ended up paying £10 more then if I was to have bought them instore.

Imagine the shop assistant had been better trained/motivated, had done her job, found your size in the stockroom and sold you something to go with your new garment.

 

[matacaster]

Not us independents ! Some reference books might have come sealed, but what do you do when someone asks, reasonably enough, to see inside one? Okay if they then buy it, but if you get stuck with it... Can't afford to have a 'browsing' copy, which still has to be paid for.

Perhaps bookshops should have a digital copy of each book that could be viewed in store. This would allow people to have a look at what they would be buying.

 

[Bletchleyite]

Imagine the shop assistant had been better trained/motivated, had done her job, found your size in the stockroom and sold you something to go with your new garment.

You're never going to get that quality of service while retail is a dead-end job on the minimum wage. You'll only get it in small businesses where the proprietor serves you and is interested in what he/she does.

TBH I think chain stores are a blip in history, and it is only that kind of specialist retail with personal service that will survive. Back to the future, you could say. And not necessarily a bad thing, as without chain stores to inflate rents there's more chance of such stores being viable.

 

[Iskra]

You're never going to get that quality of service while retail is a dead-end job on the minimum wage. You'll only get it in small businesses where the proprietor serves you and is interested in what he/she does.

TBH I think chain stores are a blip in history, and it is only that kind of specialist retail with personal service that will survive. Back to the future, you could say. And not necessarily a bad thing, as without chain stores to inflate rents there's more chance of such stores being viable.

So you think without chain stores, rents will go down? The economy has been in turmoil for 10 years and rents haven't gone down in that time, so I'm not sure that's going to start happening anytime soon.

Part of the attraction of chain stores Vs sole traders is that people have massive confidence/trust in those brands to deliver a certain level of consistent product/service. Some sole traders are great, but some are shoddy and out to fleece you. Chain stores remove that lottery to an extent, thus reducing the risk the consumer takes.

Your thinking is a bit utopian.

 

[Typhoon]

HMV still selling gift cards (according to the website) and offering pre-orders for music due to be released in March. I worry there will be disappointed customers!

 

[Typhoon]

HMV still selling gift cards (according to the website) and offering pre-orders for music due to be released in March. I worry there will be disappointed customers!

Good news! (Well, comparatively - seems like gift card holders will be OK)

HMV to honour gift cards despite going into administration

(https://www.bbc.co.uk/news/business-46708075)

However, less good news for employees from the same source.

Paul McGowan, executive chairman of HMV and its owner Hilco Capital, said: "Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market."

He pointed out HMV sold 31% of all physical copies of music in the UK in 2018 and 23% of all DVDs and Blu-rays - and its market share had grown month by month throughout the year.

But he added that the industry consensus was that the market would fall by another 17% during 2019 and therefore it would not be possible to continue to trade the business.

So what chance of the administrators selling the business on?

 

[OuterDistant]

HMV!? I haven't set foot in one in donkeys' years. Mainly because they key products they sell have literally vanished into thin air, i.e. digital downloads.

 

[Clip]

Does that work for everyone? If you had taken a day off work to go Christmas shopping you may not be able to go back the next day or been at home the next day.

Do many people take a day off for Christmas shopping or is this a case of you setting another fantastical scenario to suit what ever it is you are on about?

I mean quite a lot of people only work 5 days a week ,say, thus they have 2 days - that's right 2 days off - so they can then return on the second day so that the delivery could be made.

 

[pemma]

Do many people take a day off for Christmas shopping or is this a case of you setting another fantastical scenario to suit what ever it is you are on about?

I mean quite a lot of people only work 5 days a week ,say, thus they have 2 days - that's right 2 days off - so they can then return on the second day so that the delivery could be made.

Usually 2 days called Saturday and Sunday. Have you tried getting a weekend train on Northern since the summer?

Even when the RMT and Northern aren't killing off the high street some people choose to take a weekday off work to avoid the crowds.

 

[thejuggler]

With the advent of Steam and more recently the Xbox game pass I don't expect Game to be around in a few years. All games will be downloaded.