Second hand helps HMV gain market share in games
Profits and sales up at retailer as it continues to diversify
HMV has said that it has gained market share in the games retail sector, despite a challenging twelve months that has seen the market decline in the UK and Ireland.
The retailer's second hand initiative, Re/Play, has been a primary contributor said the company, in a year that has seen overall profits climb by 17.7 per cent.
"As has been widely reported, the games market had a very challenging year, declining by 25 per cent due to the maturity of the console cycle and the strength of software and hardware releases in the prior period," said the company.
"However, HMV gained market share, with an increasing contribution from Re/Play, our pre-played games offer."
Sales for the full year ended April 24 were £2.016.6 billion, up 3.1 per cent, with profit before tax at £74.2 million.
Chairman Robert Swannell noted that High Street and online retail continues to be competitive, with the company looking to use its size to combat loss-leading competitors.
"Our environment remains highly competitive, with some retail and online competitors prepared to offer many of the same products to their customers at loss-leading prices," he said. "Therefore, particularly given these changes taking place in our markets it has been, and will continue to be, necessary for us to rapidly diversify into new and related retail products in a way that the powerful HMV brand allows us to do."
The company is already pursing live events and digital businesses, with Swannell welcoming the Digital Economy Act and its penalties for repeat copyright infringement. HMV bought a 50 per cent share in 7digtial last year.