Some of the UK’s longstanding high-street retailers have been battered over the last couple of days, with both HMV and Blockbusters calling in administrators.
Over 8,000 jobs are at risk across the two chains, increasing the potential number of job losses from the retail sector in the last two months of nearly 20,000; including the demise of Comet in December 2012 and Jessops a week ago.
Business Analyst’s are contributing the retailers downfall to one main contribution; ‘failing to align their businesses with how the consumer use and access different media’.
HMV, one of the countries much loved music retailer, failed to stream their business through on-line methods, seeing massive competition from the likes of ‘Amazon and Apple iTunes’. Digital sales of music have risen exponentially in the decade, since its launch in 2003, while CD sales continued to crash.
HMV, own attempts to provide a similar service, never took off, mainly down to the lateness in enter to market and continuous fierce competition from other streaming companies. They also made an attempt to engage consumers on-line with their own web-store. However, ‘one click’ ordering, cheaper products and quicker delivery from Amazon, the UK’s largest on-line retailer, meant HMV continued to lose ground.
Blockbusters, also struggled after coming under pressure from more modern ways of accessing films and games. Services through streaming sites such as Amazon, Lovefilm, Netflix and Tesco’s Blinkbox have made the competition in this market, increasingly crowded.
Neither business embraced the way in which people wish to consume such media and with last year’s top selling products being tablets, games consoles, smart phones and Smart TVs accessibility to on-line services will continue to increase and grow.
Embracing new technology can sometimes be daunting, but it is evident that selling methods are changing. Accessibility to products and services need to be exposed in a way which allows the consumer to experience a relaxed and easy way to shop.
Our retail sector is a benchmark to the rest of us; their brands, their promotions, their methods of selling. None of us wish to see any further decline in economic input or job losses, so learning from these latest retail casualties and their failures to react to change, is one lesson we should embrace.