Tesco overtakes HMV to become second biggest UK entertainment retailer
New data has shown that Tesco has overtaken HMV to become the second largest entertainment retailer in the UK.
Latest figures from Kantar Worldpanel covering the 12 weeks ending 9 June, show that HMV has slipped to fifth place in the rankings while Amazon holds on to the top spot.
Elsewhere, digital music sales have grown by 12.5%, helping boost iTunes Music to number three and bringing total music sales back to growth for the first time since June 2011.
Fiona Keenan, consumer insight director at Kantar Worldpanel, said: “HMV’s recent store closures have hit the high street retailer hard, with its number of shoppers almost halving in the latest 12 weeks compared with the same quarter last year and its market share dropping by 8.4%.
Never Miss a Retail Update!“Amazon has benefitted the most from HMV’s decline, gaining across music, games and video. It made an additional £4.5 million in the second quarter of 2013 by welcoming former HMV customers and has returned to its record share of the entertainment market – 23.4%, a figure last seen at Christmas 2012. Sainsbury’s was the main grocer to win from HMV shoppers switching store, gaining an additional £2.3 million compared with this time last year.
“Tesco is now Britain’s second largest entertainment retailer with 13.2% of the market, boosted by its ongoing success selling big video releases. It took over a quarter of all spend on The Hobbit: An Unexpected Journey, the biggest selling film in the second quarter of this year.”
Meanwhile, iTunes Music has reached its highest ever share, growing by 2.4% and now holding 11.3% of the entertainment market. Keenan added: “iTunes Music’s record share is testament to rising sales of digital music which have grown by 12.5% over the past year to make up 51.4% of all music. The growth of digital, boosted largely by invigorated digital album sales, has helped the total music market to grow slightly over the past year, despite continued declines in physical music.”
The data also reveals a strong performance from the other major supermarkets. Asda now accounts for 10.5% of the entertainment market, (up 1.1%), Sainsbury’s has 8.2% (up 2.4%) and Morrisons 3.7% (up 0.1%).
Across the market, video game sales fell by 27% and DVD sales were also down compared with the second quarter of 2012, Kantar said. Blu-ray sales, however, grew by 27% year-on-year.
