HMV – End of an era? What Changes will we see in store… The recent collapse of another couple of high street heavyweights, HMV and Blockbuster, some would say has been a long time coming.
It has been reported this evening that the debt of HMV has been bought by Hilco, a restructuring specialist – let us hope they get it right this time.
Impulse is one of the top suppliers to Retail for Displays of DVD and CD’s, so the evolution of this sector is of great interest to us.
It was interesting to read that the various studios, including Universal, Warner and Sony are set to cut the prices of CD’s and DVD’s, and give the retailer more generous credit terms.
The landscape is continuing to change – and it is obvious that the likes of HMV and Blockbuster have not changed with the times.
The Retail Business Models in store work around a mix of temporary and permanent Displays – How will the recent news change this mix?
We utilise a mix of Metal, Injection moulded plastic, and Print to create the Entertainment Area in store. Heavy discounting of titles results in wider choice, and the necessity to display more facings. This is leading to a more “Consignment” approach – retailers creating their own Entertainment Departments, and attracting the Impulse Purchaser who prefers physical product – may be less inclined to shop via the internet.
Personally speaking, I am more of a Digital buyer – yet am pleased to see the re-invention of the independent stores promoting the old-fashioned browsing approach to CD and DVD – with an ever-growing Vinyl emergence – nothing wrong with that!
This, in my opinion, is where HMV have lost their way – bring back the listening points, embrace shopper interactivity via not just sampling the music (or film) but through smartphone technology too.
A real pioneer of this format is Rough Trade in Brick Lane – a real treat to the music lover, where you can listen, mix and record…. really get involved!
Display in-store is retro and minimal – you get the feeling of being in someones front room (albeit 5000 sq ft) – worth a visit.
Lastly, and by no means least, is the Rental Market. People forget this market, and it is written off due to the emerging streaming market. Impulse is currently developing an in-store display for a major grocer who is committed to a streaming offering.
The idea of physical rental (being able to browse films via the case, and collect from the store) is not quite as antiquated as you would think. Only 35% of consumers own a smartphone – and with the internet only being embraced by 65% of us – this sector is still evolving.
The demise of the big stores puts the focus on smaller outlets – enter the Symbol Groups (Londis, Nisa, Spar, Mace etc.).
Impulse have developed a new in-store system (funded by a large distributor) which gives a flexible and universal solution, designed to fit within the various shelving systems used in the Independant Stores.
So, 2013 looks to be a really exciting and changeable year. If you want confidence in creativity and delivery – contact us here.