Struggling British entertainment retailer HMV
The group, which last month posted wider first-half losses, said it was in danger of going out of business and put its HMV Live division up for sale, said on Monday sales at stores open over a year fell 8.2 percent in the five weeks to December 31.
That was an improvement on like-for-like sales down 13.2 percent in the seven weeks to December 17 and largely reflects an extra Saturday (December 24) of Christmas trade this year.
HMV, which trades from 256 stores in Britain and Ireland, employing 4,500, said in the 144 stores refitted with an extended technology range of portable digital products, technology like for like sales were up 51 percent in the five week period.
The continuing actions to focus the business and to expand our technology offering are beginning to show through, said Chief Executive Simon Fox.
We are seeing a combination of a slowing of the decline in music and film, and acceleration in the growth of technology. Undoubtedly trading conditions and the consumer environment remain challenging, but we remain confident in HMV's future prospects.
Saddled with 164 million pounds of debt the ninety-one-year old firm is suffering as a downturn in consumer spending accelerates the long-term decline of its core CDs and DVDs markets.
HMV, famous for its Nipper the Dog trademark, is also facing intense competition from internet retailers and the rise of digital downloading as well as the march of grocers like Tesco
Shares in the firm, the last national music and movies chain on Britain's town centre shopping streets. have lost 88 percent of their value over the last year.
They closed Friday at 3 pence, valuing the business at 12.7 million pounds.
(Reporting by James Davey; Editing by Matt Scuffham)