Amazon outmuscled HMV in the run up to Christmas as it achieved a record market share, however the fight for the collapsed entertainment retailer’s share remains an “open ball game”, according to Kantar Worldpanel data.
Amazon posted a record share of 23.4% in the 12 weeks to December 23, up 3.1% in the lead up to Christmas, with its most notable performance in CD sales – historically HMV’s stronghold.
HMV, which collapsed into administration last week, increased its market share to 17.5%, up from 17.3% a year earlier. Kantar said that Game and the grocers will be in a good position if HMV leaves the high street as HMV shoppers are more likely to shop in physical stores.
Asda was the only grocer to have grown its market share which now stands at 10.4%, up from 9.6% in the same period in 2011. Kantar said this was mainly driven by its performance within games as a result of significant Christmas releases.
Tesco’s market share fell 0.9% to 12.2%, Sainsbury’s share fell 0.1% to 6.2% while Game’s market share fell 3.4% to 6.1%. iTunes’ share rose 1.5% to 4.6%. Game is reportedly eyeing a rump of HMV stores as it looks to claw back market share.
Play.com, which is set to close down its retail business in March to become a marketplace, held 3.2% of the market, down from 4.4% a year earlier.
Kantar Worldpanel consumer insight director Fiona Keenan said: “Christmas resulted in an all-time record share for Amazon. The retailer posted growth across all categories, with its most notable performance in CD sales – historically HMV’s stronghold. However, this doesn’t necessarily mean it would benefit the most from possible HMV store closures.
“HMV shoppers are more likely to shop in physical stores, leaving the likes of Game and the grocers in a good position if HMV leaves the high street – particularly if they react quickly.”
She added: “Amazon’s strong performance may not sit so well for the wider industry as a move away from the high street brings with it a move away from impulse purchasing. Last year, HMV music customers spent £61m on CDs picked up while browsing. Generating sales in this way remains a challenge for online retailers.”
Kantar Worldpanel Entertaiment Retailer Barometer (% spend share)
|12 w/e 25 Dec 11||12 w/e 23 Dec 12||Percentage point change|
HMV receives 'substantial' interest from retailers for store estate
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Amazon posts record entertainment market share as rivals eye HMV spend