Bosses at major retailer HMV are not changing their minds anytime soon after a new focus on vinyl and live music helped the company return to profitability after filing for bankruptcy.
The retailer, now owned by Sunshine Records and Entertainment, posted its highest profit since being bailed out by Canadian businessman Doug Putman in 2019.
The company is enjoying strong sales of vinyl records, which last year became more popular than any other physical music format for the first time since 1987.
They are particularly popular with younger music lovers such as Taylor Swift and Harry Styles, who have boosted their total UK record sales to over 5.5 million copies by 2022. According to the Entertainment and Retail Association, total record sales rose 11% last year to £150.5m.
Sales of Sunshine, which also owns the smaller Fopp chain, rose from £90m to £150m in the 12 months to May 2022, according to the latest reports filed with Companies House. 240,000 in 2021 as many shops are closed due to the Covid lockdown.
It’s the result of Mr. Putman shifting his focus to the once-troubled retailer. HMV went bankrupt in 2013 and was bought by restructuring firm Hilco, but went bankrupt again in 2019.
Canadian businessmen who also own Toys’R’Us Canada bought HMV for allegedly CA$1.5 million (£920,000) and managed to save 100 stores, although they later lost 27 moats, including the Oxford Street flagship .
Mr. Putman has transformed music at HMV, making changes such as signing exclusive pressing deals not available at other retailers and opening his own record label in September 2022.
He said HMV would focus on signing two or three “unknowns” at the time, a year after Newcastle-based singer-songwriter India Arkin was announced as the first signing.
“Streaming algorithms mean it’s hard for new artists to get their name out there, so we’re giving them the option to buy their albums from our stores where music lovers can discover for themselves,” he added.
HMV has also grown since Mr. Putman took over the business, opening 10 new stores by 2022, including one in Dudley specializing in the latest vinyl records.
“Vinyl is undergoing an ongoing renaissance and many of the world’s biggest music artists are now making vinyl a staple in promoting their new albums, attracting collectors of all ages,” added Mr. Putman.
“Looking ahead, we expect another good performance. We are committed to further expanding the HMV retail space where there are meaningful opportunities.
Another focus was on pop culture merchandise, including items such as Funko Pop characters. Spiderman, Stranger Things and war of the stars The characters are especially popular.
Source: I News
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