Published Jan 05, 2011If you have been following the recent decline in the music industry, this news probably won't come as a surprise: record store giant HMV has announced that it will shut 60 stores in the UK within the next year.
This constitutes 10 percent of HMV's total UK shops. The company owns 285 HMV locations and 312 Waterstone's bookstores. Forty of the stores marked for closure are HMVs, while the other 20 are Waterstone's outlets.
BBC reports that the company's sales were down 10 percent over Christmas. After this poor sales performance was announced, the company's shares dropped by 20 percent. This marks a 75 percent drop over the past 13 months.
Despite the weak holiday season, HMV did its best to assure shareholders that this did not signify the downturn of music and book sales. It blamed the figures on bad weather and "challenging trading conditions." And regardless of its shoddy Christmas figures, HMV claimed, "There are well-reported consumer headwinds as we enter 2011."
The news isn't all bad for the UK record industry. According to Gigwise, indie retailer Rough Trade recorded a 5 percent increase in profits over the holidays.