HMV sales boosted by new stores
UK like-for-likes up 0.6 per cent across summer
September 29 2003
New store openings helped HMV grow sales in the UK market across the summer despite the heatwave and increasing competition from the supermarket operators.
Like-for-like sales edged ahead by 0.6 per cent. In an AGM statement, HMV said there was an inevitable impact on sales from the weather, but said gross margin had been maintained at last year’s level.
This indicates that HMV has not seen the same pressure on margins reported by other high street retailers, notably WH Smith, in the face of strong competition for entertainment sales from the likes of Tesco.
Overall UK sales growth was driven by the store openings, with six news stores opened since start of the financial year, and at least 12 more scheduled before Christmas.
HMV Asia Pacific saw sales improve, boosted by planned promotions, while there was a sales decline in HMV North America’s following the closure of loss making stores.
UK book chain Waterstone’s recorded strong like-for-like sales growth of 5.1 per cent, with July seeing the opening of the first new Waterstone’s store for more than three years, at the Trafford Centre in Manchester. Four more new stores will open before Christmas.
Total group sales grew by 1.8 per cent in the first 21 weeks of the financial year, with like-for-like sales up 0.3 per cent. Group like-for-like sales growth was flat the 13 weeks to September 20.
Chairman Eric Nicoli said: “At the AGM to review our first year as a listed company, I am pleased to report that the group continues to deliver the strategy for growth outlined at the IPO in May 2002. After a satisfactory first five months of the new financial year, and with a strong release schedule of books, music and particularly DVD for Christmas, we are confident of again achieving our financial targets.”
