Grocers snap up HMV's entertainment market share following store closures

In the 12 weeks to June 9 HMV slumped three places from second place in the entertainment retail league, according to Kantar Worldpanel. Tesco has replaced HMV as the UK’s second largest entertainment retailer, upping its market share by 1.6 percentage points to take 13.2% of the market.  Only Amazon has a bigger share.

Sainsbury’s was biggest beneficiary of HMVs downsizing as it sales jumped £2.3m sales year-on-year and it gained 2.4 percentage points to take 8.2% of the market. Asda gained 1.1 percentage points and now accounts for 10.5% of the market. Morrisons gained 0.1 percentage points and now holds a 3.7% market share.

Amazon continued to reign supreme, gaining 3.4 points to take a 23.4% share, its highest figure since Christmas 2012. According to Kantar it generated an additional £4.5m of sales from former HMV customers.

Kantar Worldpanel consumer insight director Fiona Keenan said: “HMV’s recent store closures have hit the high street retailer hard, with its number of shoppers almost halving in the latest 12 weeks compared with the same quarter last year and its market share dropping by 8.4 percentage points.”

HMV fell into administration at the beginning of the year. It was rescued by restrucuring firm Hilco in April by which time almost 100 stores had closed.

Elsewhere, digital music sales returned to growth for the first time since June 2011, surging 12.5% which helped take iTunes Music to third place. It grew share by 2.4 percentage points to take 11.3% of the market.   

Gains have been made despite a fall across video game and DVD sales year-on-year, although Blu-ray DVD sales have grown 27% against the same period last year.