Market leader HMV is rolling out big-format 'next generation' stores', featuring download kiosks and free web access, intended to transform a visit into a social experience. Zavvi, meanwhile, is introducing several in-store concepts designed to position the brand as an 'independent multiple'.
Last week, the latter launched live music brand, 'Zavvi Live', aimed at up-and-coming artists. The chain opened a concert venue under the 'Live' brand name in its Manchester store, capable of holding 300 people. The space will be used for gigs during and after store hours as well as for personal appearances and book signings.
The 'Zavvi Live' concept is now being rolled out to the brand's Oxford Street store, in London, which will open a 150-capacity basement venue at the end of the month. Zavvi, previously known as Virgin Megastores, is also setting up a 'games lounge' area in its stores, which will include sofas and plasma TV screens.
Both Zavvi and HMV will also position themselves as more specialist entertainment brands to fend off competition from supermarkets and online.
HMV, which recently announced it is pulling out of the CD singles market, is reviving its less commercial entertainment brand Fopp.
It has re-opened eight of its shops and is relaunching its online store.
HMV is also teaming up with Classic FM and record label UCJ to broaden the appeal of classical music.
This week, it is launching a range of 50 classical CDs under The Classic FM Full Works brand, which will be priced at £5.99. Classical music currently represents only about 3% of HMV's total sales, down from 5% in the early part of the decade.
For its part, Zavvi is trialling a ticket concession in its Manchester store, which will sell tickets to events at local music venues.
It is also expanding its books offering to include more controversial and specialist titles.
Music and DVD sales
- High-street sales of pre-recorded music totalled £1.47bn in 2007, a 29% drop on 2002.
- CD albums sales dropped from £1.9bn in 2002 to £1.2bn last year.
- DVD sales have grown 13% since 2002 to reach £2.1bn.
- Sales of album downloads increased 6600% to £66m between 2004 and 2007; sales of single downloads grew 1425% to £57m over the same period.
- Illegal downloads through peer-to-peer sites cost the industry £400m a year according to estimates from BPI.
- Specialist stores account for 40% of music and video sales, while supermarkets and websites, account for 27% and 20% of sales, respectively.
- Source: Mintel
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