I predicted that HMV would fail – two years ago. The survival of the venerable British brand, defying doomy analysts’ forecasts, the digital musical revolution and generalised High Street decline, was arguably more surprising than its eventual slide into administration overnight on Monday. It still hurts – even if there is sense in the cold argument that “zombie” companies need to be cleared out before recovery begins. Everyone has shopped at HMV. Its demise has left my son as an unsecured creditor, with £30 of unspent HMV gift vouchers that now have purely souvenir value.
The fact the company lasted this long was partly down to the misfortune of rivals like Virgin Megastore, Woolworths, Game and Zavvi, whose earlier collapse drove CD, DVD and computer game buyers to the few remaining physical outlets. Read more
Luxury goods companies increasingly seem to inhabit a parallel universe.
Many ordinary shopkeepers – at least in the recession-blighted west – are grappling with slumping sales, falling share prices and the threat of bankruptcy.
In the US, in an effort to offset worse than expected post-Thanksgiving trading, many stores caused confusion, according to the New York Times, by bringing forward “Super Saturday” – a day of pre-Christmas discounting – to December 17. In the UK, the bleak outlook for the likes of HMV, Peacocks and Blacks Leisure, is a symptom of what one analyst forecasts will be the worst Christmas for a decade.
Contrast that gloom with the great expectations of the luxury brands. On Wednesday, Mulberry announced it would appoint Bruno Guillon, a director of Hermès, the high-end French company, as its next CEO. He’ll lead the UK bagmaker’s push into Asia. The group’s shares added another 3 per cent, having risen 60 per cent in the past year. Read more