HMV On The Precipice

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Written By:

Aidan Williamson

13th March 2007
At 23:36 GMT

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Retail giant HMV have issued yet another profit warning.

It comes after a poor Christmas trading period and intense competition from online retailers draining market share.

Also the recent outbreak of supermarkets stocking low cost chart CDs have affected its core chart sales figures.

CEO Simon Fox who joined the group in July 2006 announced a number of plans in a bid to turn around the fortunes of the business. These include:

1.) The introduction of a loyalty card for regular shoppers.
2.) A redesign of their stores.
3.) The expansion of their range of MP3 players.
4.) A review of UK office jobs.
5.) A review of potential store closures.
6.) Possibility of merging together of HMV and Waterstone's headquarters to cut costs.

The company is hoping to save £40 million each year by 2010. A figure they can only hope to achieve if they can sell one of their full price CDs.

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