HMV to Close All 102 Stores

[Locke]

Originally Posted by Dan02

Funny, last night I was walking down stephan ave and remarked to a friend. I can't believe HMV is still open. And now they're not.

I cannot even fathom what the monthly rent must have been on that HMV location. Honestly. That must have been insane.

[DownhillGoat]

Originally Posted by Locke

I cannot even fathom what the monthly rent must have been on that HMV location. Honestly. That must have been insane.

Circa 2003, the Sportmart (where Indigo is now) was ~20k a month. After the renos to TD the leases went up astronomically. HMV at the time was about 3/4 of the size of the Sportmart.

[Locke]

Originally Posted by kunkstyle

Circa 2003, the Sportmart (where Indigo is now) was ~20k a month. After the renos to TD the leases went up astronomically. HMV at the time was about 3/4 of the size of the Sportmart.

I dont know man, $20K/month would likely have been my starting point.

When I was looking for places to lease for my business I made a call to one place that was a fraction of that size and they were asking $18K/month.

Yup. Nope.

[MrMastodonFarm]

Originally Posted by kunkstyle

Circa 2003, the Sportmart (where Indigo is now) was ~20k a month. After the renos to TD the leases went up astronomically. HMV at the time was about 3/4 of the size of the Sportmart.

Yeah, HMV really downsized in that location, it was massive initially.

The A&B sound in the old Bank of Montreal on Stephen Ave too. Just a massive store. Had to take the escalator or elevator all the way up to the country music section. Bought a lot of Johnny Cash records there.

[DownhillGoat]

Originally Posted by MrMastodonFarm

Yeah, HMV really downsized in that location, it was massive initially.

The A&B sound in the old Bank of Montreal on Stephen Ave too. Just a massive store. Had to take the escalator or elevator all the way up to the country music section. Bought a lot of Johnny Cash records there.

I actually went in there for some vinyl before Christmas. Was the first time since renos. I couldn't believe how much smaller it was now.

The old A&B was awesome. I loved that store. Wish that building was basically anything but a gym now.

[TheScorpion]

One of my favourite spots in West Edmonton Mall is the two-storie HMV. That place is pretty cool.

[blankall]

Originally Posted by TheScorpion

I own about 500 DVDs and Blu-Rays. It'll suck when they stop putting new releases on physical formats. The picture quality is good, and I'm willing to pay for it.

Ah well. All good things must inevitably come to an end.

It'll be a while before that happens. Streaming and downloading has issues, particularly with ultra high def formats. With 4k on the rise, the video and audio philes will keep physical media around for a while. Can a retail chain survive on those sails in the age of incredibly high rents.... Probably not.

[Dion]

Originally Posted by TheScorpion

Yep. I am a world-class fool. Ah well

You could open up your own store

[GGG]

Originally Posted by Violator

First A&b sound then Future Shop now HMV

Wonder who's next

Toys r us
Ebgames
Best buy

Technically futureshop is still here, just rebadged as bestbuy giving up the fake competition angle.

The electronic stores are probably next. Their entire profit margin is based on selling a warranty with 80% margin on it.

I think Toys r us makes it because of last minute gift buying and parents bribing kids. I think it's more at risk than Walmart.

I give EB games 5 years tops.

[Winsor_Pilates]

I worked at the Southcentre HMV for about 4 years in high school/Uni.
So many great memories and a lot of awesome co-workers.
This news makes me sad

[Hack&Lube]

Originally Posted by GGG

Technically futureshop is still here, just rebadged as bestbuy giving up the fake competition angle.

The electronic stores are probably next. Their entire profit margin is based on selling a warranty with 80% margin on it.

I think Toys r us makes it because of last minute gift buying and parents bribing kids. I think it's more at risk than Walmart.

I give EB games 5 years tops.

I don't see Toys R Us leaving. You can't digitize toys and many parents and kids still favor physical items and physically going on trips to the toy store. TRU also makes a killing on high margin Babies R Us products to the point where half the store is going that direction.

If we end up in a retail space where it's Wal Mart and Amazon only, it will suck a lot! Browsing stores with a good environment and stock is important. Online shopping isn't the same, nor is browsing through depressing/cold stores like Walmart/Costco.

[N-E-B]

Even EB games is starting to change. I believe it's called EBX at Chinook now and they only sell games for the new consoles and a bunch of random knick-knacks and "nerd swag". Could be a last ditch effort?

[calgaryblood]

Every time I go to EB games, it's packed. Where's the idea coming from that they're in trouble?

[Snuffleupagus]

Originally Posted by calgaryblood

Every time I go to EB games, it's packed. Where's the idea coming from that they're in trouble?

20 years ago the nightclub payphone had a lineup at closing time to order a cab, now there isn't a payphone anywhere let alone in a bar.

quick look at it's stock shows it has lost 60% in 3 years, 3 years from now it'll be either toast or a penny stock.

Physical media is in trouble period.

[Nage Waza]

Originally Posted by calgaryblood

Every time I go to EB games, it's packed. Where's the idea coming from that they're in trouble?

I don't know much about the success of the company, but I would imagine that most of their income is from the used game market, and as the digital download market expands, their used game market decreases.

Perhaps if they didn't pay $5 for a used game they sell for $35, they may still be relevant? I haven't sold a game ever, and even with kids in the house I can't justify selling something for so little.

On top of all of that, the developers get NOTHING from the used game market, and instead get less, so there is that as well. Lots of people in the industry hoping EB goes away.

[Hack&Lube]

Originally Posted by N-E-B

Even EB games is starting to change. I believe it's called EBX at Chinook now and they only sell games for the new consoles and a bunch of random knick-knacks and "nerd swag". Could be a last ditch effort?

Its the same model as HMV tried to go into. Because new console games have very thin margins, they are trying to push the other products. They even have their own house branded accessories (Biogenik) because they can probably get like 90% margins on those.

This is not new though. I remember in the 90s, I went to American Gamestop and Babbages and they were selling all the nerd gear and toys in half the store as well.

[Buff]

Originally Posted by habernac

I'm one of three people left on Earth that buys CDs and Blu Rays, so this kinda blows, but not surprising. Amazed they lasted this long.

Who is the other guy?

... nevermind. Nothing like being days late to the party.

[CaptainCrunch]

Its funny because I went into the Best Buy on Sunday to pick up some stuff, and the first thing that you notice is that they aren't carrying even half of what they used to carry in store, most of it is online order only.

I went to do the usual browse of DVD's and CD's, and I couldn't even find CD's and their DVD selection was tucked in the back and pretty pathetic.

What I also noticed is that for the most part the Salespeople there couldn't care less, they were all loitering around as if waiting for something to happen, but there was nobody actively going over to talk to their customers. The CRMs were also incredibly non communicative.

The problem with online shopping is that it really gets rid of the incidental sales. While I'm buying a computer I can browse through the movies or software to see if something catches my eye. That model is gone, and when your profits are in the incidental areas its going to hurt your business.

[Buff]

Chapters/Indigo: Physical books are seemingly more important. In the library world the circulation of digital books has plateaued while circulation of physical books has begun to increase again. There are still so many people that don't use the library because they prefer to own their own copy and/or have a clean/mint version to read.

EB Games: When even an old, set in his ways, guy like me prefers downloading games then you know EB Games is embarking upon a quick death.

[Northendzone]

there was a story on last nights Calgary global news from glaobal in Winnipeg. the reporter said the employees were apparently shocked that HMV was closing.

you'd think the front line ee's would have noticed the changing purchasing patterns of consumers first.......

in some ways this si sad as I think about how I used to go to hmv at lunch and peruse thru the dance mix compilation section looking for mixes of songs I heard in the bar - of course you usually had to waint a while between hearing it and being able to obtain it.

now that type of music is pretty much available instantly via whatever service you use to obtain music