Telford shoppers back HMV as axe looms

The retailer has gone into administration putting 2,200 jobs at risk.

Vik Kelly-Teare, 45, a lecturer, of Stocking Park Road, Lightmoor, said: "I'm not surprised that administrators have been called in. They have been saying it's a struggle for a period of time with all the streaming activity these days.

"There is so much competition from the online sources like Netflix and Amazon.

"I do worry about the people whose jobs are at risk.

"If it does go I don't know where I'll get my vinyl records from. I like that there's been a resurgence in vinyls and you can get them from the store. Streaming is good, but its temporal. At least with records you can keep them, whereas with streaming you don't appreciate owning the music as much."

Liam Bould, 36, unemployed, of Wrekin Road, Wellington, said: "I used to live in Shrewsbury when there was a really big HMV there. That closed some time ago and they moved to a smaller store and it wasn't quite the same after that.

"I shop at the Telford branch quite a bit. It's a wicked shop and I love going in there. I usually get my DVDs and box sets from there. I go in and check out what's new with the music, then I download it after.

"I would really miss HMV if it closed. It's my favourite shop."

Anthony Blount, 17, of Lawley, who attends North Shropshire College, said: "I love my music and I've been in HMV recently. I listen to rock music and that's the only place I can get it. I'm into Black Veil Brides and bands like that.

"I spend all my money on my music."

Brandon-Lee Cousens, 17, of Telford, a fan of Japanese pop art,said: "I would miss it 100 per cent. I'm a vinyls man and I get them from HMV. I also pick up Anime music and posters, and games from there as well.

"At Christmas I spent £120 there on presents for my family and friends."

Troubled times for music retail giant

Its distinctive logo of a dog peering into a gramophone is recognised across the country, but retailer HMV has become the first victim of the struggling high street after Christmas, writes James Pugh.

Despite becoming the biggest high street music retailer in the UK after it was founded nearly 100 years ago, it has collapsed into administration for the second time in six years.

Like so many retailers this year, it has been hit by high business rates, weak consumer confidence and the rise of online streaming services.

Paul McGowan, the executive chair of HMV, said the decline in the CD and DVD market had made the situation impossible.

The retail giant has been though this before. It filed for administration in 2013 before it was acquired by its current owner, Hilco, for about £50 million.

At the time the company said it had been squeezed by internet retailers and supermarkets, whose scale enabled them to offer CDs and DVDs at cheaper prices.

HMV’s latest troubles are a sign of the problems faced by entertainment retailers during a period of rapid change for the industry, with competition ranging from online specialists to streaming sites such as Netflix.

There are now nearly 10 million subscribers to Netflix in the UK – more than the number of homes signed up to Sky’s satellite TV service.

Employing 2,200 staff, HMV has more than 120 shops across the country, including in the Pride Hill Shopping Centre in Shrewsbury, Telford Shopping Centre, Mander Centre in Wolverhampton and the Bull Ring in Birmingham.

The stores are set to continue to trade while negotiations are held with major suppliers and it looks for buyers.

Estaban Bridges, owner of the DVD Megastore in the Pride Hill Shopping Centre in Shrewsbury, said his business actually benefits from internet streaming sites.

Compilations

“As with all businesses in towns and high streets this last year we have had our ups and downs but continue on good standing with a positive outlook for the future," he said.

“At DVD Megastore we love the internet streaming sites as once they take down series compilations, people come in to store to buy them. We can’t get enough of them!

“Also, try and find some of the old classic or discontinued titles on some of these streaming sites, it isn’t a full library of all the films and series ever created and you will be surprised at what isn’t actually on them.

“We are extremely sorry to hear the news about HMV. We hope they are able to continue their presence as we work well together and if they were to collapse this would have a negative effect on our business.”

2018 had already seen tens of thousands of jobs disappear from the high street following the collapse of Maplin, Poundworld and Toys R Us UK.

Other retailers including Carpetright, Mothercare and New Look‎ have shed stores and jobs through agreements struck with creditors.

Next will be the first of the major high street chains to update the City on its Christmas trading performance when it issues a statement on Thursday.

Mr Bridges added: “I don’t think the high street is in crisis, I just think we haven’t yet found the entrepreneurs to give it back it’s magic.”

A report by the KPMG/Ipsos Retail Think Tank published this week said the sector would face renewed pressures this year because of shifts in consumer behaviour, an over-supply of shops, high levels of debt and the cost of regulation.

Mike Ashley, the founder and chief executive of Sports Direct, warned before Christmas that this November was the “worst on record” for retailers and would “literally smash them to pieces”.

Richard Lim, chief executive at Retail Economics, said: “Set against the backdrop of turbulent political and economic undercurrents, this perfect storm of pressures has intensified into a year of distress for the industry. While it is too early to assess the relative success of Christmas trading, it’s clear that consumer confidence is fragile and shoppers’ propensity to spend is weak.”