With the U.K. music industry still reeling from HMV entering administration Jan. 15, new figures from the Entertainment Retailers Association (ERA) suggests that there may be a silver lining to the retailer’s financial woes.
According to the ERA (utilizing Official Charts Company data), U.K. music sales grew 11.6% in the first four weeks of 2013 when compared to the same period the previous year. Although unit sales were not provided, the almost 12% jump equates to the best start to a calendar year in terms of music sales since 2010, leading ERA director general Kim Bayley to cite the publicity surrounding HMV and its future with helping to fuel an instant bump in consumer interest.
“This is an extremely positive result and a great start to the year. It certainly demonstrates that there is far more robust demand for music than is often assumed,” said Bayley in a statement. “There has been a significant public reaction to the threat to HMV. Stores have been inundated with customers concerned that they may lose their local store and this appears to have translated into sales,” she went on to say.
While news of HMV entering administration may well have contributed to a temporary upturn in consumer interest and, in turn, music sales, it’s likely to be only a short-term boost, aided by the retailer’s month-long 25% discount “Blue Cross Sale” that launched Jan. 12, several days prior to it calling in the administrators.
The OCC reports that 2013’s best-selling single so far is Will.I.Am FT Britney Spears’ “Scream And Shout” (Interscope), which has moved 234,000 copies year to date (513,000 since its release in December 2012). The Motion Picture Cast Recording of “Les Miserables” (Polydor) is 2013’s biggest selling artist album to date with 118,000 units sold. “Now That’s What I Call Music 83” (EMI TV/UMTV) is 2013’s biggest-selling compilation album so far, with sales of 94,000 year to date (1.4 million overall).
As previously reported, retail restructuring group Hilco U.K. acquired HMV’s debt Jan. 22, effectively gaining control of the company, which despite being in administration remains open for trading. Hilco U.K. is now working alongside administrators Deloitte in devising a rescue package for HMV, although job losses and a number of store closures are widely anticipated.
According to Retail Week, Deloitte has set a final deadline of Jan. 30 for parties to confirm their interest in either a part of full purchase of the stricken entertainment retailer. It is understood that approximately 20 parties have registered an interest in acquiring part of all of HMV’s retail estate with retail entrepreneur and British TV star Theo Paphitis, who owns stationer Ryman, among the latest names rumored to be eyeing the company.
HMV currently has 223 U.K. stores, including 9 Fopp outlets, and over 4,300 staff.
Spokespersons for Hilco U.K. or Deloitte had not replied to requests to comment at press time.