HMV is to focus on its digital and live offerings as part of plans to reshape its business for the future, following the sale of Waterstone’s.
The HMV Group, which has issued three profit warnings so far this year, said in a statement to the City that it had also renegotiated its bank debt.
The company has struggle to compete with the likes of Amazon and Play.com in recent years as its business is still firmly rooted in the high street. Online-only retailers do not have the costs associated with shops and many also avoid VAT by siting their businesses offshore.
The HMV Group says it will be evolving “the group’s product mix and growing in live and digital.”
As well selling through its shops, HMV currently sells online through its website while its HMV Digital site sells MP3s to download from a catalogue of more than 8 million songs and audiobooks.
HMV Group said: “In particular, this strategy will focus on rebalancing the store space and range through the expansion of HMV’s technology offering and exploiting growth opportunities for the group’s live venues, festivals and ticketing businesses.”
