HMV boss is first victim of internet price war

The internet shopping revolution claimed its first big high-street scalp yesterday when the boss of HMV and Waterstone's quit as the group blamed the combined power of online retailers and the supermarkets for plummeting sales.

Alan Giles handed in his notice after unveiling the worst Christmas trading figures of any big UK retailer so far, particularly at the HMV chain. He said there had been "a quantum jump" in online sales in recent months, while the supermarkets - especially Tesco and Asda - had once again turned the screw on price. The rise in popularity of music downloads has also undermined the traditional high-street music retail business.

Mr Giles, a music fan whose tastes range from Cream to Kasabian, initially dismissed downloading as posing little threat to his business. When the pirate site Napster emerged the HMV chief executive insisted it was not a lot different from teenagers borrowing albums to tape in the 70s. It would, he said, give them a love of music which would ultimately translate into higher CD sales.

"A year ago I was saying the internet would plateau at about 10% of this market," he admitted yesterday. "Now I say that I was wrong. I just don't know now how far it will go. This is a brave new world for retailers." He said he wanted a career change and did not intend to take another full-time job.

From today's Guardian

Pliable says - I wonder what the 'victim's' pay-off will be?

Report broken links, missing images and other errors to - overgrownpath at hotmail dot co dot uk
Image credit -
Image owners - if you do not want your picture used in this article please contact me and it will be removed. If bandwidth is a problem with your permission I will host your image.
If you enjoyed this post take An Overgrown Path to Download doomsayer


Shablagoo! said…
Well if everything that isn't in one of their sales wasn't so expensive...

Plus their commitment to niche music in their stores (excepting the huge London stores)is lamentable.

There I got that off my chest!

Recent popular posts

Why cats hate Mahler symphonies

Watch Michel Petrucciani video online

The Berlin Philharmonic's darkest hour

On boredom

Classical music's biggest problem is that no one cares

Classical music is not connecting with its rewired audience

Nada Brahma - Sound is God

Is recorded classical music too cheap?

Happy birthday to a legendary recording producer

Why I hate cool and ironic