According to the latest data from Kantar Worldpanel for the 12 weeks ending 15 March, HMV, which collapsed into administration in 2013 after being hit by sharp increases in online music sources and growing supermarket competition, recorded a 12 per cent year-on-year increase in physical music sales valued at 9.8m.
British artists such as Sam Smith and Ed Sheeran proved the most popular with shoppers.
HMV has benefited the most from the growth of physical music returning to the number one retailer position, and moved ahead of Amazon in physical music sales for the first time since September 2013,” said Fiona Keenan, strategic insight director at Kantar Worldpanel.
HMV has been successful in attracting shoppers in store that want to browse its range of products such as CDs and headphones, before deciding what to buy.
Keenan adds: Historically this was a real area of strength for HMV. Spend from consumers browsing for music products in HMV has grown by almost 50 per cent compared to this time last year, helping to boost its share of total browsed spend in the market to 43.4 per cent making it the standout player. Pre-administration, HMVs share of browsing purchases was regularly over 50 per cent, so this recent resurgence is a positive sign for the retailers future as it faces increased competition from the online market.
Read more about HMV:
- Was HMV the first victim of showrooming
- How the VAT loophole crushed retail
- Death of the High Street Not if mobile technology can help it
All of the major supermarkets lost share in the entertainment market compared with this time last year, largely due to losses in video game sales. The biggest title of this quarter across physical entertainment was Grand Theft Auto V (GTA V) for PlayStation 4 and Xbox One. While the grocers took the majority of sales for GTA V on the PlayStation 3 and Xbox 360, each only had a third of sales on the newest machines as customers opted instead for specialist retailers.
According to Kantar, the physical entertainment market as a whole has fallen 3.3 per cent, with 1.4m fewer shoppers in the market year-on-year, though higher average prices and more frequent purchasing have offset some of these losses. This rate of decline has slowed since 2014, when the final two quarters of the year saw the value of the market drop by 13.1 per cent and 4.7 per cent.
Among the major retailers, Amazon had the strongest sales growth up by 19 per cent year-on-year. At 23.1 per cent, this is its largest ever first-quarter share.
Amazon has increased sales in all physical entertainment markets despite the total games and video sectors being in decline. And, while it has not attracted more shoppers, existing shoppers are on average spending 27 per quarter, compared with 22.51 last year.