HMV operates from 379 stores in the UK & Ireland, Canada, Hong Kong and Singapore and through local territory websites. The HMV brand is one of the world’s best known and respected retailers of entertainment products.
379
Stores in five countries
1.9m
sq ft of prime retail space
£1.3bn
Total sales
40m
CD and
54m
DVD units sold in HMV UK & Ireland
DVD 32% of total Group sales
Overview
DVD maintained its position as HMV’s largest product category, accounting for 46% of sales in HMV UK & Ireland and 47% in HMV International. The UK DVD market grew by 8% in volume in 2007/08, driven by a strong new release schedule. Longer term, the DVD category is expected to slow as new video distribution channels gain traction, however, for the medium term this is expected to be offset by growth in the high definition Blu-Ray format. HMV is well positioned to take advantage of these opportunities.
Bestselling DVDs 2007/08 (UK market):
Harry Potter and the Order of the Phoenix
The Simpsons movie
Pirates of the Caribbean 3: At World's End
Hot Fuzz
Transformers
Music 25% of total Group sales
Overview
The UK music market declined by 12% in 2007/08, which was in line with the Group’s expectations. We are anticipating similar rates of decline for the next few years, and are managing our product mix accordingly. Music now accounts for a quarter of the Group’s sales, down from 31% last year. However, music will remain crucial to the HMV brand, as we continue to develop our digital offer.
Bestselling CDs 2007/08 (UK market):
Leona Lewis: Spirit
Amy Winehouse: Back to Black
Various: Now 68
Mika: Life in Cartoon Motion
Westlife: Back Home
Games and technology 12% of total Group sales
Overview
The UK market for games hardware and software grew by over 40% during the year, across consoles including the Nintendo DS, Xbox360, PS3, PSP and Nintendo Wii. HMV UK & Ireland outperformed the market and grew share. Games represented 17% of sales in HMV UK & Ireland, up from 12% last year. HMV Canada also rolled out games during the year and the category is now 7% of its sales mix. Technology products, predominantly MP3/MP4 players and related accessories, have also been introduced into the HMV offer and in the UK & Ireland these represented 4% of sales for the year.
Bestselling games software 2007/08 (HMV UK and Ireland):
More Brain Training
Brain Training: How Old Is Your Brain?
Mario & Sonic at the Olympic Games
Fifa 08
Pro Evolution Soccer 2008
Waterstone’s is the UK’s leading specialist high street bookseller, renowned for both its wide range and quality of advice. The chain operates through 313 stores and a transactional website, waterstones.com
313
Stores throughout the UK and Ireland
1.8m
sq ft of prime retail space
£564m
Total sales
75m
books sold by Waterstone’s
Books 29% of total Group sales
Overview
Books are 29% of total Group sales. The total UK book market has seen steady but modest growth over the past five years but this accelerated to 8% in 2007/08, of which approximately 2% was due to the publication of Harry Potter and the Deathly Hallows in July 2007. The market continues to be highly competitive and promotional, particularly on bestselling new release titles, although price deflation in the market remained broadly stable.
Bestselling books 2007/08 (Waterstone’s):
Harry Potter and the Deathly Hallows: JK Rowling
Nigella Express: Nigella Lawson
A Thousand Splendid Suns: Khaled Hosseini
A Spot of Bother: Mark Haddon
Jamie at Home: Jamie Oliver