HMV’S Guernsey fulfilment centre is playing an increasingly important role in the music and entertainment retailer’s success.
The group this week announced a 25% annual-profit increase and said current trading was in line with expectations amid a challenging economic outlook. HMV, which also owns bookseller Waterstone’s, made a pre-tax profit of £56.6m. for the year ending 26 April.
A spokesman said internet sales, for which the Guernsey fulfilment centre is responsible, were up 40% on the same period and now account for roughly 10% of overall business.
‘We expect this trend to continue and can see online accounting for approximately a fifth of our company turnover in a few years’ time. We’re happy with the organic level of growth that we’re seeing. Of course we’ll look to support this, where we can, by working in a positive way with the government authorities, who have always been very supportive.’
HMV’s sales from continuing operations rose from 11.3% to £1.87bn, including a like-for-like rise of 7.3%.
The firm is one year into a three-year turnaround plan centred on interactive stories and more online sales as it battles competition from supermarkets and other internet retailers.
It invested more than £1m. in the Guernsey fulfilment centre, which occupies the former Guernsey Post building and covers 50,000sq. ft, employing 60 people.
‘Guernsey is important to HMV, both because we have one of our best stores in the chain there and because our online fulfilment is based there,’ said the spokesman.
‘One reason why we were drawn to Guernsey in the first place was its strong enterprise culture and work ethic.
‘We have a great team who work really well together and are highly motivated and hard working. They’re committed to what we’re trying to achieve and want to help to make it successful, so any success we enjoy reflects on their commitment.’
HMV’s shares have outperformed the UK general retail index by about 55% this year. They closed at 129.5p on Monday, valuing the firm at about £497m.
The star player this year had been game sales, said the spokesman.
‘The last 12-18 months have been a bit of a golden period for the games industry, with amazing console launches such as Wii and PS3 and fantastic titles released. Grand Theft Auto IV has been our fastest-ever selling computer game, closely followed by Halo 3 and Wiifit. These are hugely popular game franchises and have been driving the market forward.
‘Our store in the Markets has experienced a huge increase in demand for games on all the different platforms: Nintendo Wii, Sony PlayStation and XBox, which has also been reflected in our online orders via the fulfilment centre.’
Article posted on 3rd July, 2008 - 2.30pm
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4 Article Comments
Companies like HMV are ruining our island & our heritage & they dont employ locals like me! half of them are from the mainland, and are a drain on our services !!
In what way are they a drain on our services Michelle?
Michelle
Please relook at what you have written. I would suggest any company that wishes to add to our taxtake is such a boost for us given our current crisis surely. As to them not employing locals like you is probably due to the fact you haven’t bothered to ask them have you?
However whilst is is very nice for them to recognise that we are good for them! How about letting us know the good you are splashing us back with? Surely this a time where the big players would do well to use their expensive PR people to the max. Rather than boast about profits it is high time they show themselves to be giving something back surely?
I am not knocking them for their sucess story but at a time where many are losing theirs. Listening to how your shareholders are chirping about their dividends may not curry many favours.
How about some good stuff. What are we benefiting in tax and maybe a statement on the ratio of local to non local staff would be timely.
Now their statement below:
‘One reason why we were drawn to Guernsey in the first place was its strong enterprise culture and work ethic.
‘We have a great team who work really well together and are highly motivated and hard working. They’re committed to what we’re trying to achieve and want to help to make it successful, so any success we enjoy reflects on their commitment.’
You fail to mention our VAT loopholes! Our tax strategy wasn’t another reason I suppose?
We have handed our non local companies our cakes with cherries and all the trimmings to boot. Of course they are going to say we will some of that CHEERS. Incidentely the last was so tasty we are wondering when the next one is coming.
At the same time whilst in our strange quest to remain able to compete. It is our own businesses that are findig things so difficult that they are looking to relocate before they go under. This is the zero-ten madness that has already been created. Not that it has or ever could work for us. Maybe there will be enough uptake of non local business that we will need to beg to stay for no other reason other that being heavily reliant on what they chuck our way. Lucky us eh? Like dogs fighting for a singe bone. Nice? We all need to get a firm grip and stop being upbeat cos soon there won’t be anyting to be upbeat about actually. Maybe the doctors will be doing a roaring trade with prozac and they will be prescribed at the schools next. Lovely? If ever we needed Deputy Falla to make a comeback now it is it. Out of shock and sheer disgrace would be good enough for me but prefably cos ne knows he is the captain this island needs and more than ever.
Hate the fact that HMV have a “Guernsey Fulfilment Centre” though. What’s wrong with “Shop”.