The gap between high street retailers and consumers is widening due to the growth of the digital market, which provides greater convenience for consumers in the purchase of media by reducing time and costs. This factor has become evident with HMV in its reluctance to keep up with modern technology, resulting in lower sales figures. This has given the opportunity for other competitors such as Amazon as well as other retail outlets to take advantage of this by reducing prices for their customers.
The future of more than 4,000 HMV employees is questionable with a possibility of loss of employment, due to branches in both the UK and Ireland closing down, although nothing has been confirmed yet.
However, HMV have recently announced that they intend to continue business as usual until they have sold the company.
HMV have made a controversial decision that all gift vouchers are now void. Needless to say this has evoked anger amongst its customers, especially as some have been given as gifts. In response to this, administrators have yet to make a final decision on gift cards, as they are still reviewing it. So it is wise to wait until a final decision has been made before you discard your gift cards.
It is also worth noting that extended warranties are still valid as they are provided by Allianz Insurance, who are a third party to HMV.
Administrators are still deciding whether to make massive reductions on products as there is still an opportunity to increase profit through some stores, with nearly 50% of HMV branches that have the potential to sustain profit margins.
Conclusively, HMV may yet remain an outlet due to its longstanding reputation and marketability.