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HMV suffers huge profit loss

Thursday, 30th June 2011 15:31 GMT By Andrew Groen

Purveyors of UK entertainment merchandise, HMV, announced today that they’ve experienced huge losses over the last year, with video games specifically “underperforming.”

The losses add up to £121.7 million which is a stark drop from last year’s number which was a rather significant profit of £67.6m.

HMV pointed to video games specifically as one of the factors that has put them in this position, citing competition from department stores and supermarkets.

Responding to the ongoing poor performance, HMV has liquidated some of its assets by selling off Waterstones and HMV Canada.

The chain has also been able to secure bank refinancing worth £220m until 2013.

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13 Comments

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  1. cloud_ix

    bloody hell that is some loss

    #1 3 years ago
  2. Lounds

    R.I.P HMV

    tbh I’ve probably bought twice from HMV in the last 6 years, seriously they are way too expensive, Posters, CD’s, DVD’s, are all way cheaper at super markets. Tesco is the biggest DVD/CD seller in the UK.

    #2 3 years ago
  3. Peetry

    I stopped shopping at HMV long ago, prices always seemed that little to steep. High street media retailers have their days numbered IMO

    #3 3 years ago
  4. RandomTiger

    I think rent day is nearing for UK retailers so it makes sense to close any stores now which is why there’s a rash of it right now.

    #4 3 years ago
  5. Fin

    I always buy my launch-day games in HMV (don’t order online in case they don’t arrive in time).
    Everything else (post launch-day; dvds; music) is bought online.

    #5 3 years ago
  6. Lewis247

    That’s because most of there gaming prices are stupidly high. Even for pre-owned ones. They always seem to be 5 or 10 quid dearer. Only somtimes will they have in store deals for some items which are amazing bargains but over all they are far too over priced compared to other places.

    It crazy because they need their stuff higher priced to make up the loss but the higher prices is what is also killing there sales… it’s like a vicious circle for them.

    Oh well.

    #6 3 years ago
  7. Akira_Tenshi

    That’s because HMV is to damn expensive.

    #7 3 years ago
  8. UuBuU

    HMV suck. They’re overpriced, their music range is too mainstream, and why anyone would choose to buy a game from one of their stores is beyond me. They only have themselves to blame for resting on their laurels.

    #8 3 years ago
  9. Hunam

    HMV try selling things at stupid prices that’s why.

    #9 3 years ago
  10. drewbles82

    Only time i buy at hmv is when i get vouchers at christmas, even then i wait til they have a good sale. Such as £3 dvds, got £30 vouchers, thats 10 new films for my collection.
    Never buy day one anymore, whats a couple of months wait when its almost half the price in some cases.

    #10 3 years ago
  11. ultramega

    Here in Canada the prices are reasonable, and I’ve mostly just used them for video games (and those prices are the same as stores like Wal-Mart). It’ll just be sad to see my local store eventually go down the tube. Less competition is never better.

    #11 3 years ago
  12. xino

    HMV are in trouble man, people think they are making money from all those price slashes and sales.
    But they are not, they are in need of money so badly!

    #12 3 years ago
  13. silkvg247

    They’re too expensive, regular non-geeky people are getting interenet savvy these days, checking deal sites and so on; more often than not getting things cheaper new than they are per-owned in HMV (and other shops).

    I still check HMV occasionally, on the offchance they are clearing out stock. Their clearance prices are sometimes OK but other than that I stand there saying out loud.. cheaper on net, cheaper on net, cheaper on net, then I walk out :p

    #13 3 years ago