HMV upbeat despite Christmas sales drop

Entertainment group HMV insisted today that it still has a future - despite reporting a further drop in sales in the run-up to Christmas.

HMV, which owns 252 stores in the UK, said its plans to shift focus to technology products, by refitting stores with an extended gadget range, saw group like-for-like sales fall 8.1% in the five weeks to December 31.

But in the 144 stores refitted with an increased range of portable digital products, like-for-like technology sales were up 51%.

HMV, which recently sold bookseller Waterstone’s and announced plans to sell its live music division, repeated its warning that there were “material uncertainties” which may cast doubt on the group’s ability to continue.

But chief executive Simon Fox added: “Undoubtedly trading conditions and the consumer environment remain challenging, but we remain confident in HMV’s future prospects.”