Profits at music and book retailer HMV have more than halved as the firm continues to fight its much reported fight against the ever competitive supermarkets and online retailers. The retail group confirmed yesterday that it made pre-tax profits in the year up to 28 Apr of £48.1 million, down from £98.2 million a year ago, and this despite a rise in overall sales. Of course HMV have made no secret about their financial struggles - they announced a new strategy to meet the new challenges in March - but the year end figures do confirm just how big a challenge they are facing. No wonder they got a little pissed when Prince decided to give his new album away.
Commenting on the figures, HMV CEO Simon Fox said: "Our markets are changing profoundly. Entertainment is being generated and consumed in entirely different ways putting pressure on traditional retail space and traffic". Looking forward, he stressed the group was looking into ways to "reduce our dependence" on physical CD sales.