Entertainment group HMV plans to more than double sales of entertainment-inspired fashion in a bid to evolve its merchandise mix and boost overall margins.
Entertainment-related product categories currently account for 9% of total retail sales. HMV group chief executive Simon Fox said that the company intends to increase this to account for 21% of total sales by 2012/13 in order to maintain UK net margins at 5% to 5.5%.
HMV’s fashion offer covers entertainment-related merchandise connected with hit movies and television shows, plus music-related apparel such a T-shirts and hoodies, complementing the group’s move into the live music venue market.
In August last year HMV held talks with a number of fashion retailers including Topman about ramping up its clothing offer, although discussions with the Arcadia-owned brand ultimately did not lead to a deal.
However, at the same time HMV scaled back some of its music lines in order to make more space for entertainment-related fashions in its flagship Oxford Street store.