UK entertainment market to lose £300m if HMV shuts up shop, says Kantar


Kantar Worldpanel claims £300m will be wiped off the UK home entertainment market if HMV disappears entirely from the high street.

Craig Armer, consumer analyst at Kantar Worldpanel, said: ““If HMV were to close completely, we expect the entertainment market to lose over £300m – this is over 9% of the total entertainment market value. Some shoppers will simply move to other retailers but the value generated from browsing and buying on impulse will be lost.

“Of the remaining shoppers and spend, we predict the big four grocers combined will pick up 32% of this spend, and Amazon will claim 29%, inflating its share to 25.5% and making it the largest entertainment retailer by a significant distance. Tesco would be number two with a 14.1% share of the market.

“Without HMV, the high street would only take 16% of entertainment spend, driven by a few key remaining chains such as the slimmed down Game chain, Argos and Blockbuster. This would be a significant drop in share – this time last year high street retailers made up 31% of the entertainment market.

“Although Amazon is likely to gain the most, HMV shoppers prefer physical stores meaning any bricks’n’mortar chains are likely to acquire slightly more of this lost spend than expected.”

 UK home entertainment market retailer value shares 

  Value %      
  Total Physical Video, Physical Games, Physical + Digital Music
    52 w/e 30 Nov 08 52 w/e 25 Nov 12 ppt change   8.7 20.7 12
   HMV   21 17.5 -3.5
   Tesco   9.5 11.8 2.3
   Asda   8.5 9.9 1.4   1.8 6.6 4.8
   Sainsbury   2.7 6.1 3.4
   Game   8 4.9 -3.1   4 3.7 -0.3
   Morrisons   2.8 3.2 0.4
   Gamestation   3.2 1.7 -1.5

All data is for the 52 w/e to 25 November 2012 and covers physical videos, physical games, and physical and digital music