HMV and Focus face challenging 2011

Entertainment retailer HMV and DIY specialist Focus are two of the companies facing a particularly challenging year ahead, according to retail expert Neil Saunders.

The Consulting Director of Verdict Research said that companies such as this pair are operating in sectors where there is “arguably too much capacity”, although he suggests that HMV’s main problem is that traditional music sellers are increasingly being replaced by services provided online.

Saunders describes HMV as a “good retailer”, as you can read in his end-of-year retail review on Retail Gazette, but it is evident that the market has changed and the companies that contribute to it must adapt in order to thrive.

“Being a relatively weak player in a slow growth, highly competitive market is not an ideal position to be in at the best of times,” he explained.

“In the relatively weak environment of 2011, it could well prove to be disastrous.”

Source : Retail Gazette