HMV has played a key role in the revival of physical music in recent years.
Data from BPI and Official Charts Company recently revealed that total physical sales could see a year-on-year increase for the first time in two decades. Music Week was the first to report the news and analyze the numbers, including our report in the latest issue.
Of course, vinyl has been on the rise for much of that period—it will be 17 years in a row by the end of 2024—but now there are signs that the CD is turning a corner.
Following Doug Putman’s takeover of HMV – the last national music chain – in 2019, major investments were made to refit stores and expand the vinyl range.
HMV and Fopp are currently expanding again, having returned to their flagship store on Oxford Street last year. Fopp recently opened a new branch in Nottingham, while HMV has expanded into Belgium.
Here HMV & Fopp MD Phil Halliday speaks with Music Week about the CD revival, store openings and the return to Oxford Street …
How will the Oxford Street store perform after its reopening in November 2023? What are the prospects for further store openings in the UK?
“Our flagship store on Oxford Street holds a special place in many people’s hearts and since reopening, customers both new and old have been returning to the store in droves. With dedicated vinyl, CD, music technology and merchandise departments, the store has something for everyone, while our HMV Live & Local events and book signings give pop culture fans something unique and exciting to look forward to each month.
“Since opening in November, music has significantly exceeded expectations in every quarter. Q2 was no exception, driven by HMV’s Vinyl Week as well as sales and footfall of Taylor Swift’s catalogue during her UK tour dates and of course the release of The Tortured Poets Department in April. We are always looking to expand the business and will continue to do so in the UK where it makes sense. This applies to both HMV and Fopp. Most recently we opened a new Fopp store in Nottingham.”
Physical sales are on track to increase year-on-year across the market for the first time in two decades. How surprised and optimistic are you about the performance so far this year?
“We’ve always believed in physical retail – it offers more than what you get online, whether it’s recommendations from staff who are experts in the field or discovering a new artist or genre while browsing in-store. But it’s been very exciting to see that belief translate into real-time growth and we expect a strong end to the year in terms of both sales and footfall in our stores.”
Vinyl is driving the rise in physical record sales. How big is the audience for this format now? Who are the customers who come to HMV?
“Some of the growth in vinyl over the past year has come from releases by classic artists, but we’re seeing more and more contemporary artists like Harry Styles and Taylor Swift releasing new material in vinyl format, driving sales both in-store and online. Our stores attract fans from a variety of ages and generations as our extensive catalog has something for everyone – whether it’s K-pop or merchandise and memorabilia from classic films like Star Wars.”
We expect a strong end to the year in terms of both sales and customer frequency in our stores
Phil Halliday
How successful was HMV Vinyl Week in June in terms of sales and visitor numbers and how is the industry supporting you in this initiative?
“Last year we saw queues of over 100 people outside HMV stores across the country. This year was no different, with over 40 exclusive offers from George Michael to Bob Marley. We had some great sales from George Michael, Simple Minds, Ocean Colour Scene and Fleetwood Mac and were particularly pleased with the result for Jeff Wayne’s The War of the Worlds.”
How much credit does Taylor Swift deserve for the development of the physical music market in 2024?
“If you look at physical sales, 2023 belonged entirely to Taylor Swift. Her album 1989 (Taylor’s Version) turned out to be the best-selling album of the year – which is amazing considering it was only released in late October. 2024 was no exception: her latest album, The Tortured Poets Department, accounted for huge sales both in-store and online.”
The decline of the CD may have reached its lowest point. How is this format evolving and what is needed for a lasting revival?
“A lot has been written about the rise of vinyl recently, with sales driven by collectability and people’s love for the format. CDs are no different, offering customers a more affordable way to get their favorite music. K-pop has been a real pioneer in this area, with most of them coming with highly collectible photocards, photobooks, stickers or mini posters. We’re seeing other genres pick up on this as well, offering something beyond the traditional CD format, which I think is crucial to its continued success.”
Can vinyl growth continue? How strong do you think it will be this year, considering the current release schedule, which includes new albums from Coldplay, London Grammar, Oasis’ 30th anniversary, Definitely Maybe and more?
“Absolutely! We’re already seeing great pre-order numbers across a range of genres – Sabrina Carpenter’s album is doing really well, as is David Gilmour’s. We’re also excited about the development of some vinyl soundtracks like Twilight and The Last Of Us.”
Aside from the top releases, the final question is: how important is the catalogue to the continued success of vinyl, with classic titles being made available in reissues or simply being restocked to meet demand?
“We have a huge range of vinyl available in our stores and online, from new LPs to limited edition classics from yesterday. Records like Fleetwood Mac, Suede and S Club 7 continue to drive sales for us, and collectors jump at the chance to buy limited edition versions of their LPs all year round, but especially during Vinyl Week.”
PHOTO: Leon Neal/Getty Images
