HMV Join Forces With Tesco in Retail War

HMV and Tesco are to join forces in Ireland, Hot Press has confirmed. The entertainment retailer will work with the supermarket giants in creating a new sub-brand, which is likely to be called HMV @ Tesco.

Tesco has long had its own music retail element. However, the Tesco stores pursued a relatively narrow focus on best-selling Top 30 chart material, with mainstream artists like Beyoncé, Rihanna and Sam Smyth to the fore in latter years. This meant that, even in Ireland, Tesco seldom carried a significant range of Irish product. The new 'outlet-within-an-outlet’ shops are likely to considerably broaden the musical and entertainment frame of reference, mirroring to a far greater extent the wider HMV offer.

“It should be a really positive move for the business,” one record company insider told Hot Press. “Obviously we are concerned about issues like discounting, and the price at which product will be sold. There has to be a good margin in this for the music and entertainment companies. Otherwise we will end up giving more for less. But as long as we can get the balance right there, then it should be a huge shot in the arm for everyone on the content creation side."

The hope is that the venture will significantly increase the total sales of physical product in Ireland. HMV stores are likely to feature in 80 out of a total of 142 Tesco outlets nationwide – which represents a huge increase in the number of shops across the country selling a broad range of CDs and DVDs.

“It is also a statement of faith in the Irish economy,” the same insider added. “The expectation is that there will be a significant increase in retail activity here, over the coming year or two. And, for the entertainment business, that expectation of growth will certainly be helped by having a vastly increased number of outlets selling music and films. Which will hopefully mean bigger sales for Irish acts too – whether it is the likes of The Henrys and Altan, on the one side, or Villagers, Ryan Sheridan and Le Galaxie on the other.”

A spokesperson for HMV, at O’Leary PR, confirmed the move to Hot Press. However, the timetable for putting the new stores in place has yet to be agreed. As far as the Irish music industry is concerned it can’t happen soon enough. “The recent loss of Indi Distribution was a big blow to a lot of Irish artists,” one musician told Hot Press. “We desperately needed some good news – and this could be exactly what the doctor ordered. As long as HMV extend their normal policy of stocking a decent range of Irish music to the units in the Tesco outlets, then it could be a real win-win situation for everyone. Here’s hoping.”

Here’s hoping indeed.