ERA calls for calm

 

Monday December 15, 2008

 

By Ben Cardew

 

The Entertainment Retailers Association has called on labels to support music retail in the wake of the crisis at Woolworths/EUK and the ongoing problems of Zavvi.

 

Administrator Deloitte said last Friday that it was winding down EUK, after failing to find a buyer, while Woolworths’ stores embarked last week on a whirlwind “closing-down” sale. Meanwhile, Zavvi was forced to deny stories that its creditors had called in an emergency restructuring team.

 

ERA, which represents retailers of music, video, DVD and computer games, is warning that unless suppliers continue to trade on normal credit terms with the retailers caught up in these difficult situations, they could create further difficulties in the market.

 

ERA director general Kim Bayley says that knee-jerk reactions among suppliers to reduce their credit exposure could have serious, long-term consequences for an entertainment retail sector already battered by falling CD prices and online competition.

 

“The UK has long enjoyed one of the most developed entertainment retailing sectors in the world. More retail outlets have led to proportionately more sales of music, video and games than in virtually any country in the world. Anything which threatens that infrastructure poses a significant threat not just to the retailers concerned but to those suppliers themselves,” she says.

 

“It is difficult enough to sell music, video and games in the current economic climate. Suppliers need to remain supportive of those retailers that are still trading and avoid making the situation worse.”

 

ERA acknowledges that suppliers do need to manage their stock risk, but warned that the greatest risk of all was that customers were greeted with empty shelves when they went shopping.

 

“As the situation has worsened over the past weeks, suppliers need to ask themselves not just if they want to run the risk of empty shelves, but whether they want to risk even more stores closing,” Bayley adds.

Why does anyone still buy from High St stores when we have the likes of Play.com offering way cheaper prices ?

 

Not bothered about High St retailers getting screwed financially over CD's as CD's and DVD's are way cheaper online

Why does anyone still buy from High St stores when we have the likes of Play.com offering way cheaper prices ?

 

Not bothered about High St retailers getting screwed financially over CD's as CD's and DVD's are way cheaper online

Because believe it or not some people actually like to go OUT shopping, using their legs, and browsing, so you would like to see our city/town centres ghost towns??

Because believe it or not some people actually like to go OUT shopping, using their legs, and browsing, so you would like to see our city/town centres ghost towns??

 

No I would like to see High St retailers compete price wise with online retailers, I am amazed HMV haven't gone bust yet with some of their daylight robbery prices

 

 

HMV tend to be ok until the CD falls out of the chart, same with Zavvi.

 

You do get a better deal at the supermarkets tho. However you trade in a wide choice for a slightly lower price tag

Yes its really sad. I heard yesterday that lots of shops have or are to be closed down due to Bankrupt and the government not having anymore money :(

 

That's because they're using the taxpayers (i.e. mine and anyone else who works) to shore up banks. Meaning we know either completely or partially own (I think) six banks/building societies. How nice of us. (And yet, if anyone who has a mortgage with any of them will still have their house taken away from them by a company they own if they don't keep up repayments on said mortgage.)

 

And to _J_ (I think that's your name) - the VAT won't go up next year. It's going back to its pre-November rate in January 2010.

Edited December 15, 200816 yr by DitzyNizzy

I must admit I usually buy from CD WOW or Play.com!

 

I would happily go browsing in a shop but what's the point when there price's are sky high!

 

I have been trying really hard though to buy from HMV say if there's a couple of pence in it, I will shop with HMV but when there's £1-£2 difference and I am buying a few albums or presents I tend to go with Online retailers such as CD wow..Play.com as they are cheaper and with free delivery.

 

I fear that soon will we see all Entertainment stores closing...Remember when there was a problem with Virgin..It's a hard & Competitive market to be in, as retailers are selling the exact same products, where-as clothes shops, homewares etc.. have different product ranges so it's easier to sell on the high street.

 

Well Goodbye Woolies and EUK..Looks as though Zavvi will be going down the pan shortly, Stores are getting dribs and drabs of new stock and sourcing direct where they can but it would be very difficult to do this in huge bulk loads and website demands.

 

Hopefully Zavvi can find another Major supplier!

Edited December 15, 200816 yr by Cracker Chrisj.

I must admit I usually buy from CD WOW or Play.com!

 

I would happily go browsing in a shop but what's the point when there price's are sky high!

Do both: browse in a shop, don't buy anything and then order it off the internet :magic: :P

there was a survey done that showed people would rather pay slightly more in a shop with good service.

 

There is a slight thing in shops called overheads to account for ;)

If many distribution companies and music retailers go under then who will replace them? What if no-one does? I mean, they may find that there is no more profit to be made from physical music, as although album sales haven't gone down loads the price of them has and profit margins are ever smaller. Its a very worrying thought, although i might be being ridiculously pessimistic here.

 

DVD's/Blu-Ray and Games is where it's at nowadays.

Blu-ray sales SUCK! They're down on last year, and thats without even having HD-DVD to compete with anymore! :lol:

I honestly remember more buzz about MiniDisc when that came out, and look the way that went (and Blu-Ray has supermarket support ffs)

Games industry is bigger than Music industry now though, and is either about to or just has overtaken film (hollywood) industry.

Sure physical music will continue just fine in the medium term, but shorter term things could take a hit. Sure Xmas sales would be higher by a fair proportion without these stock probs. I have had difficulty getting a number of CDs across multiple retailers this Xmas, The only consistently well stocked shop is HMV, and they've generally put all their prices up probably coz they know we're stuck with them this time of year. Really though, same CDs are £2-3 more expensive than last month. Hardly encouraging the spend/fiscal stimulus the government wants for the economy is it HMV?! :angry:

No I would like to see High St retailers compete price wise with online retailers, I am amazed HMV haven't gone bust yet with some of their daylight robbery prices

 

High Street shops *can't* compete price-wise with on-line retailers, but a significant proportion of the population don't have/don't want a computer, but *do* want music, so there will always be a demand for physical sales, especially of albums.

 

I work for Sainsburys and I can say our entertainment aisle is screwed. I believe we can't get an regular alternative supplier so it looks like no cds/dvds by next year, and no january sale stuff as we have to actually order it separately, not discounted existing stock as people tend to think. Games seem unaffected at the mo tho.

I work for Sainsburys and I can say our entertainment aisle is screwed. I believe we can't get an regular alternative supplier so it looks like no cds/dvds by next year, and no january sale stuff as we have to actually order it separately, not discounted existing stock as people tend to think. Games seem unaffected at the mo tho.

thats a shame, i like your entertainment section! Not as cheap as Asda, though sometimes you do get good bargains if you have a good look. I remember buying Katy Perry's album on release week in Sainsburys for £6.97. I took it up to the counter and when the shop assistant rang it through she was like "only £6.97?!" i said "yeah thats why i'm buying it!" and she was saying she would buy a copy before it sold out as it prob would quickly at that price (was cheaper than anywhere else for sure that week)/

Also had a couple of good game buys that were cheaper than anywhere by £5-10 for certain random titles.

 

Surely someone will need to step in and fill this gap?