HMV is closing the gap with Amazon in the UK
The retailer overtakes Tesco to become the second biggest entertainment seller.
What a difference three years makes. HMV, a company that was teetering on the edge of closure three and a half years ago, has pushed past Tesco to become the UK's second biggest entertainment retailer behind Amazon. The company recorded a 2 percent rise in sales of CDs, DVDs and video games in the three months up to April 10th, giving it a 16.9 percent share of its domestic market versus Tesco's 16.1 percent and Amazon's 22 percent -- its best showing since it re-emerged from administration in January 2013.
Figures shared by Kantar Worldpanel paint a bright picture for brick and mortar retailers, which continue to take back market share from their online counterparts. In the first quarter of 2016, 69.8 percent of entertainment sales were recorded at a high street or grocery store, with physical music and video games the most popular products.
Music has proved vital for HMV. Last year, the company saw vinyl sales reach their highest level in over 20 years and was responsible for selling one in every three CDs and DVDs in the UK in the two weeks leading up to Christmas.
Despite its growth, HMV will be aware that high street spend fell by 2 percent in the last quarter. However, it's a small dip compared with the 12 percent fall seen by online retailers. With consumers more willing to spend in brick and mortar stores, the upcoming merger between Sainsbury's and Argos makes a lot of sense. Based on today's report, a combined entity would hold fourth position or 12.9 percent of the entertainment market, making Tesco its next big target.
