HMV has played a key role in the revival of physical music in recent years.
BPI and Official Charts Company data recently revealed that overall physical sales could register their first year-on-year increase in two decades. Music Week first broke the news and analysed the figures, including our report in the latest edition.
Of course, vinyl has been on the increase for much of that period – it will be 17 consecutive years by the end of 2024 – but now there are signs of a CD turnaround.
Following the 2019 acquisition of HMV – the last national music chain – by Doug Putman, a major investment was made to refit stores and increase the vinyl range.
HMV and Fopp are now expanding again, with the return to its Oxford Street flagship store last year. Fopp recently opened a new branch in Nottingham, while HMV has expanded into Belgium.
Here, HMV & Fopp MD Phil Halliday speaks to Music Week about that CD revival, store openings and the return to Oxford Street…
How is the Oxford Street store performing following its relaunch in November 2023? What’s the outlook for more UK store openings?
“Our flagship store on Oxford Street has a special place in many people’s hearts and we’ve seen customers, both new and old, return to the store in droves since reopening. With dedicated sections for vinyl, CD, music tech and merchandise, the store has something for everyone, while our HMV Live & Local events and signings offer pop culture fans something unique and exciting to look forward to each month.
“Since opening in November, music has performed significantly above expectations each quarter. Q2 was no exception, driven by HMV’s Vinyl Week, as well as the sales and footfall generated across Taylor Swift’s catalogue during her UK tour dates and, of course, the release of The Tortured Poets Department in April. We’re always looking to expand the business and will continue to do so in the UK where it makes sense to. This goes for both HMV and Fopp. Most recently, we opened up a new Fopp store in Nottingham.”
Physical unit sales are on track for their first year-on-year increase in two decades across the whole market – how surprised and optimistic are you about the performance so far this year?
“We’ve always been big believers in physical retail – it has something over and above what you can get online, whether that’s recommendations from staff who are experts in the field or discovering a new artist or genre whilst browsing in store. However, seeing this belief translate into real time growth has been very exciting, and we expect a strong end to the year in terms of both sales and footfall across our stores.”
Vinyl is driving the physical sales increase – how broad is the audience now for this format? Who are the customers coming into HMV?
“Some of the growth in vinyl this past year came from classic artists’ releases but more and more we’re seeing contemporary artists like Harry Styles and Taylor Swift releasing new material in the vinyl format, driving sales both in-store and online. Our stores draw in fans from a range of different ages and generations, owing to the fact that our expansive catalogue has something for everyone – whether that be K-Pop or merch and memorabilia from classic films like Star Wars.”
We expect a strong end to the year in terms of both sales and footfall across our stores
Phil Halliday
How successful was HMV Vinyl Week in June in terms of sales and footfall, how is the industry supporting you on this initiative?
“Last year we saw queues of more than 100 people outside HMV stores across the country. This year has been no different, with over 40 exclusive records on offer from George Michael to Bob Marley. We saw some great sales from George Michael, Simple Minds, Ocean Colour Scene and Fleetwood Mac, and were particularly pleased with the result on Jeff Wayne’s The War of the Worlds.”
How much credit should Taylor Swift take for the physical music market performance in 2024?
“When looking at physical sales, 2023 very much belonged to Taylor Swift. Her album 1989 (Taylor’s Version) emerged as the biggest seller of the year – which was amazing considering it was only released in late October. 2024 has been no different, with her latest album, The Tortured Poets Department, making up a huge volume of sales both in store and online.”
CD’s decline could have bottomed out; how is this format performing and what’s needed to bring about a lasting revival?
“A lot has been written about the rise of vinyl lately, with sales driven by its inherent collectability, as well as people’s love for the format. CDs are no different and offer customers a cheaper means to get a hold of their favourite music. K-Pop has been a real trailblazer in the space, as most come with highly collective photo cards, photo books, stickers or mini-posters. We’re seeing other genres embracing this, offering something above and beyond the traditional CD format, which I think is crucial to its continued success.”
Can the vinyl growth continue? How strong do you expect it to be this year with the release schedule we have, including new albums from Coldplay, London Grammar, the Oasis 30th anniversary of Definitely Maybe, and more?
“Absolutely! We’re already seeing some great pre-order numbers across a whole range of genres – Sabrina Carpenter’s album is doing really well, as is David Gilmour’s. We’re also excited with what some vinyl soundtracks are doing, such as Twilight and the Last Of Us.”
Finally, away from the frontline releases, how important is catalogue to the continuing success of vinyl as classic titles are made available in new editions or simply resupplied to meet demand?
“We have a huge array of vinyl on offer across our stores and online, from new LPs to limited-edition classics from yesteryear. The likes of Fleetwood Mac, Suede and S Club 7 continue to drive sales for us, with collectors jumping at the chance to purchase limited-edition versions of their LPs throughout the year, but especially during Vinyl Week.”
PHOTO: Leon Neal/Getty Images
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