Song remains the same for HMV

HMV will finish the year on the same downbeat theme that has dominated the rest of 2011 when it reports interim earnings figures tomorrow.

The retailer, which has been fighting for survival against plunging demand for its CDs and DVDs, is expected to show little overall progress from its strategic switch into portable digital products such as iPods and tablet computers. Though its “Fast Forward” format stores have traded well initially, analysts warn that the crowded electronics market has struggled amid the squeeze on consumer spending.

“Technology will make or break HMV this Christmas,” retail analyst Nick Bubb said. “HMV is already the number one seller of headphones, so it could just work.”

The group, recently forced to sell off its Waterstone’s bookstore chain to stave off collapse, is expected to report widening losses for the six months to October amid a decline of 10 per cent or more in like-for-like sales. Bubb is predicting a 19 per cent rise in first half losses to £38m.