Struggling high street retailer falters on the road to recovery.
HMV has seen its market share fall by over 50% as customers flee to cheaper and more readily available supermarket and online alternatives, according to analysts at Kantar Worldpanel.
The film, music and games retailer has reportedly lost its position as the nation's second biggest entertainment shop, just behind Amazon, to upstart Tesco.
Worse still, the company dropped behind iTunes and Asda as well, placing it just above Sainsbury's in the list of entertainment retailers at fifth place.
“HMV’s recent store closures have hit the high street retailer hard, with its number of shoppers almost halving in the latest 12 weeks compared with the same quarter last year and its market share dropping by 8.4 percentage points," Kantar's insight director Fiona Keenan explained (via MCVUK).
“Amazon has benefitted the most from HMV’s decline, gaining across music, games and video. It made an additional £4.5 million in the second quarter of 2013 by welcoming former HMV customers and has returned to its record share of the entertainment market – 23.4%, a figure last seen at Christmas 2012."
Following the deal, the new owners have cut back on HMV's high street presence in a bid to recreate the success it saw in HMV Canada.
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