HMV banks on loyalty scheme - DecisionMarketing

HMV buyer Hilco has confirmed the retailer’s loyalty programme will be placed at the heart of its revival, replicating its Canadian business model which has helped the business reverse its decline.
The move is likely to see MyHMV – which was being tested before the company collapsed – revert to the PureHMV brand, which has over 2 million members. There are also said to be huge numbers of registered hmv.com customers.
Hilco has said that as part of its takeover it will stop selling devices such as tablets and iPhone docks, instead focusing on music, DVDs and Blu-ray discs.
Hilco chief executive Paul McGowan, who will become chairman of HMV, said: “A new website and digital services, a rebooted Pure rewards scheme, and a fresh approach to our stores are all in the works. We’ve got some truly exciting stuff in store but all of this is going to take us a little while to perfect.
“We hope to replicate some of the success we have had in the Canadian market with the HMV Canada business which we acquired almost two years ago and which is now trading strongly. The structural differences in the markets and the higher level of competition in the UK will prove additional challenges for the UK business but we believe it has a successful future ahead of it.”
The Canadian business, acquired by Hilco in July 2011 for £2.05m, recorded sales of $270m (£170.1m) during 2012, and analysts claim much of this growth has been triggered by its digital music strategy.
HMV Canada recently launched a digital subscription-based streaming service, called The Vault, which uses a Spotify-like system to allow shoppers to listen to music across a number of different devices.

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