Could one of Canada’s biggest music retailers be going the way of Sam the Record Man? After slumping sales over the holiday season, the UK-based HMV Group is considering “a full or partial exit from the Canadian market,” Sky News reports.
Earlier this year, HMV announced plans to shutter around 60 of its UK locations over 12 months, and now, apparently, it’s examining the future of its 125 stores in Canada.
The HMV Group cited “challenging entertainment markets” as a contributing factor to its poor performance over Christmas, normally the company’s peak period.
No doubt, the ubiquity of free (and often illegal) music and movie downloads continues to erode CD and DVD sales across the industry.
A spokesperson for HMV Canada provided a short emailed statement about the future of the company in Canada: “The majority of HMV stores across Canada will not be affected. Those that may no longer be viable due to increasingly high property costs, proximity to other locations and/or other associated running expenses will be evaluated,” it said.
The statement went on to say that HMV Canada will maintain its roots in the retail entertainment business as it branches out into the digital world.
In other news, Apple is in talks to improve the quality of its iTunes music downloads.
[Sky News]
