Sales drop but HMV to press on with Fast Forward concept

HMV chief executive Simon Fox said the first six ‘Fast Forward’ stores – where up to 25 per cent of floor space is devoted to gadgets such as iPods and tablet computers – recorded a doubling in like-for-like sales in the 18 weeks to September 3.

Mr Fox said HMV would this month continue to roll-out these space changes at the majority of the retailer’s 150 stores after unveiling a 15.1 per cent decline in like-for-like sales across the HMV Retail network.

Elsewhere, HMV, which earlier this year sold book chain Waterstone’s and HMV Canada in order to seal a deal with its lenders, saw a 19.4 per cent drop in total group sales, which includes its concert arm HMV Live.

The results cap a poor week for retailers after Argos and Homebase owner Home Retail Group, PC World and Currys parent Dixons Retail and chocolatier Thorntons all revealed falling sales amid a tough consumer environment.

HMV is making a substantial investment in promoting its Fast Forward stores as it battles to reverse declining sales in the run-up to Christmas.

The new format, which will be promoted in and out of stores under the ‘Play it, touch it, live it’ strapline, could be seen as a risk as consumer electronics retailers such as Dixons Retail and Comet owner Kesa have struggled this year.

HMV, which is closing up to 60 stores in a bid to make £10m of cost savings, said it had closed 29 stores in the 18-week period.

Elsewhere, HMV Live saw a 20 per cent increase in like-for-like attendance figures over the summer period and on September 6 the new 1,500-capacity HMV Ritz opened in Manchester.