According to The Economic Times, the boss of British music retailer HMV, which is seeking protection from its creditors, said he was sure an administration process would result in the survival of the 92-year old firm in some form.
It is not going to be an easy position to communicate.
The news this week, that a popular high street brand like HMV, is following in the footsteps of digital camera retailer Jessops and entering receivership is sad news for all of those involved in managing and running the company, and for those of us who experienced the retailer, way-back-when the latest release was only available on vinyl.
But, is it really a surprise? Blame the current recession if you like, and certainly it may have had some impact, but are these retail receiverships not the inevitable outcome of a world where consumers have entirely shifted their support from the high street to the convenience of a more efficient digital environment.
Many of us have been using online retailers like Amazon.com for the last twenty years and online retailing giants like Amazon as the recent financials show, continue to go from strength to strength. Amazon has just announced that 2012 was a record-breaking holiday season for businesses selling with more than 2 million third-party sellers worldwide on Amazon experiencing record holiday growth. HMV should have adapted to the threat long ago.
At first unknown and intimidating consumers now purchase everything from groceries to entertainment, holidays to home furnishing online. Those coming behind us, who never held the latest LP release in their hands and waited until they got home to listen to it, take on-line for granted and have grown up with the likes of itunes, spotify and the ability to download videos from the comfort of their sofa.
Even the independent music retailing sector is not a sure thing despite the belief that a smaller, specialised and more personal service will last the pace. Last April The Economist predicted the impact the collapse of the last music retailer would have in the independent music retailing market in the UK. If these predictions are correct, events this week do not suggest a strong future for independent music retailers either.
As former customers, we wish HMV well with the business and communications challenge it has set itself in ensuring the survival of some of the outlets. As pragmatists we feel belief will only get you so far.
Tags: Public Relations