Archive: HMV

I have felt very sad about the demise of Woolworths ever since the business began to unravel in front of my eyes around two months ago. I was not sad so much because of my job — I was planning on leaving after the Christmas period anyway. I was just sad to see Woolies go because I was genuinely fond of it as a shop.

I always quite liked the idea that I worked for Woolworths, which had been one of my favourite shops as a child. Kids loved Woolies. I heard a story from another store about a child who enquired to his mother, “Is this Woolies branch closing as well?” When she said they were all closing, the child burst into tears. When I was on the tills during the closing down sale, I heard another child say, “Don’t give us any change!”

My personal affection for Woolies is more surprising because there wasn’t even a branch in Kirkcaldy when I was growing up. There had been a branch at the east end of the High Street, but it had gone by the time I could have any memories of it. It was one of the branches that were sold off in the 1980s.

Today the building houses the Kirkcaldy Indoor Market. But is still very recognisable as a Woolworths, with that classic design of the entranceway that was used for so many Woolworths branches up and down the land.

In the 1990s, there was a small Entertainment-only branch of Woolworths in Kirkcaldy that was more or less in the centre of the High Street. But it closed long before I was old enough to have an interest in buying music, and I have no memory of being in the store at all. That unit has since been an Our Price, a Ponden Mill and latterly a bicycle shop which I think has now closed down.

No, my memories of Woolies came from nearby Glenrothes. I have relatives in Glenrothes, and we would frequently visit, often popping into Woolworths on the way back. When I was a child there was something magical about Woolworths. Maybe it was all the pic ‘n’ mix sweets that I was seldom allowed to buy. I still remember the quaint stickers that used to adorn the pic ‘n’ mix stands — “Please buy before you try” and messages like that.

I always used to wonder why Kirkcaldy didn’t have a Woolies store. It made Glenrothes seem like such a superior town. When I had my job interview at Woolworths, I was asked what I liked most about Woolworths. My answer spoke about how I thought Glenrothes was a better town than Kirkcaldy because it had a Woolies. It must have sounded like I was taking the piss, but it was true.

Woolies finally arrived back in Kirkcaldy in 1998, and it was a large store at that. It filled part of a huge unit that Tesco had recently vacated, having just bought Wm Low whose Kirkcaldy store was judged to be in a better location. From then on, Woolies was always a trusty destination particularly when I had to buy gifts. It is no surprise that Woolworths made most of its profits at Christmas, because in Kirkcaldy at least it was more or less the only place you could find a decent selection of chocolates.

Woolies was also unquestionably useful for other odds and ends. The problem was, you couldn’t always quite tell what odds and ends you would find there. Quite soon after I started working there I clocked that customers were frequently unsure about what Woolies actually sold. I was as well. Even after working there for two and a half years, I would still sometimes be stumped by a question a customer asked about the products we sold, and I would have to go on a wild goose chase to find out if we stocked it.

The store’s role as an events retailer also meant that the range would radically change throughout the year as a matter of routine. Cleverly, shelf space was reserved for seasonal goods. The cycle went from home stuff in January, to gardening in the spring, to back to school in summer, to Hallowe’en stuff in September and October, onto Christmas stuff from then onwards. Tough luck if you wanted to buy a bird feeder during winter though.

Woolworths made a name for itself as a place where you could buy bits and bobs. If you wanted to buy something but weren’t sure where to get it, you could pop into Woolies. This meant that people had an affection for Woolworths — it was that useful shop where you could get your bits and pieces.

But it was also deeply dangerous territory for a store to occupy. Customers would sometimes pin all their hopes on being able to find an obscure household object in Woolies — and would become angry if we didn’t sell it. Then, as widespread access to the internet became a reality, you no longer had to search for your obscure items in Woolies. You could just search Google for them instead.

Meanwhile, all too often people wouldn’t know what Woolworths actually did sell. I primarily worked on the stationery department, but before I worked at Woolies I doubt I would have been able to tell you that it sold stationery. I certainly wouldn’t have bought my stationery from there before I started working there. I shopped at Stationery Box or WH Smith for my ringbingers and refill pads instead.

The sheer variety of goods sold by Woolworths also meant that it had multiple rivals on the High Street, each of whom focussed on a niche that they could specialise in. HMV sold a better range of entertainment products. You could go to Dunelm Mill for your household goods. Around half a dozen phone shops surrounded our back door. There were at least two greetings cards shops a stone’s throw away. The Works had some art and craft stuff. Even for toys you could go to Argos. Apparently Wilkinson destroyed Woolies down south. And of course, Woolworths competed with the major supermarkets on almost everything.

It seemed as though Woolworths needed to bring a better focus to its product range. But at the same time, it was difficult to see which departments could be safely ditched. DIY-type stuff could have been a prime candidate, but at the same time there was nowhere else on the high street (certainly on Kirkcaldy High Street) where you could buy that sort of thing. Entertainment could have gone due to poor sales, but it propped up an important arm of the Woolworths business, Entertainment UK.

I thought it would have been a good idea for Woolworths to position itself as a shop for kids and their parents. That would have brought most Woolworths departments — confectionery, kids clothing, toys, even home goods — under a clearer focus. In a way, I think Woolies had already become that store, but it didn’t have the bravery to properly market itself as such.

It is too easy, though, to blame Woolworths’s demise on the eclecticism of its range. Analysts may have bemoaned the way Woolies stocked Monopoly boards under the same roof as screwdrivers. But that doesn’t explain why one of the healthiest stores on the High Street just now is Poundland, which is like a jumble sale in comparison to Woolies. Plus, the thesis is fundamentally incompatible with the never-ending rise of the supermarket.

My next and final post in the series will look at some of the blunders of Woolworths and what life as a Woolies employee was like in the final few months.

Copyshite

A series of posts

  1. Copyshite
  2. The entertainment industry’s wrong turns
  3. The future of music: gigs and t-shirts
  4. The future of music: pretty boxes

Apologies for taking so long to get round to writing this post. That pesky life business getting in the way as usual.

In the previous posts in this series I have been waxing lyrical about copyright law and the mistakes the entertainment industry has made in adapting to a world with the internet. Over the past couple of years, people in the music industry have — belatedly — begun to tackle the issue properly.

Radiohead made big news last year with their latest album, In Rainbows. What hit the headlines was their novel pricing structure. You could choose the price you wanted to pay for it, between zero and £100.

This idea wasn’t all so novel though. Radiohead are by no means the first band to release their music for free, or to take the ‘honesty box’ approach to pricing. They certainly won’t be the last.

Prince did a similar thing this year as well when he gave away his latest album free with copies of the Mail on Sunday. This led to the odd sight of branches of HMV installing a dumpbin of the paper for one day only.

It’s worth thinking about exactly what Radiohead did by implementing a choose-your-own-price method. The record industry often likes to talk about how much it has “lost” as a result of piracy. But the numbers they use are misleading.

As Tim Worstall pointed out on his (now tabloid) blog many months ago, demand curves slope downwards. So the record industry don’t lose anything like as much as (number of illegal downloads) × (RRP of a CD) as a result of the download revolution.

The old model meant that people could basically either choose to buy a CD at its RRP or pass on it completely. So if you were only willing to pay £11.98 for a CD that was priced £11.99, you wouldn’t buy it. That is fine — that is how the market works.

But when filesharing became more common, people could choose to buy a CD at its RRP or download it for free. Those were the only options available. So if you were still willing to pay £11.98 for that CD, you would not pay £11.99 — you’d just download it for free. From £11.98 and lower, record companies were losing profits. They didn’t know how to deal with this, so used the ham-fisted techniques I described in the previous post instead of coming up with a new business model like they should have done.

The In Rainbows method tackled the problem head-on. Under Radiohead’s system, if you were willing to pay £11.98, you could choose to pay £11.98. What’s more, if people were willing to pay, say, £80 for the album, they could choose to pay that as well.

Chances are that most wouldn’t. You could legally download it for free, so lots of people will have done this without feeling any sense of guilt. Radiohead aren’t releasing any figures, so we can’t tell. But reading between the lines of the interviews Radiohead have given, they seem quite happy with how the experiment has worked out and most estimates suggest that Radiohead have made more money using the honesty box approach than they would have done with the old way — mostly because all of the middlemen have gone.

The middlemen are a big problem. They seem to be particularly so at EMI. Recently EMI was taken over by a private equity firm, Terra Firma. They appear to be particularly clueless. In the space of a few months they have managed to piss off three of the biggest acts on their roster — Radiohead, Paul McCartney and now Robbie Williams.

Here is some insight from Paul McCartney:

“I’d started saying to them: ‘Look, we could write a thing and have it released the next week.’ And they would say: ‘You can’t do that these days.’ So I would say: ‘Well, how much time do you need?’ And they’d say six months. I said: ‘Why do you need that long?’ And do you know what they said? ‘To figure out how to market it.’ I said: ‘Wait a minute, are you sure you need six months for that? Couldn’t some bright people do that in two days?’ Jesus Christ. I said: ‘Look boys, I’m sorry, I’m digging a new furrow.”

EMI seem to be making the mistake of treating artists like widgets. They have mistaken creativity for something that can be switched on and off like a tap.

And they seem to be amazingly inefficient. Fans know all-to-well about the six month gap between the announcement of a new album and its actual release date. It surely don’t have to be that way. Indeed, one of the most refreshing things about In Rainbows was that it was announced a mere ten days before its release.

So if the middlemen are no longer needed and are actively hurting the artists and the fans, does it mean labels are doomed?

Well, Radiohead took a risk, and it paid off. A lot of people say they were in a lucky position. And they were. Radiohead are the best band in the world and probably the most popular contemporary band. They were always going to do well regardless.

But what about the smaller bands? Surely the chances are that they won’t do as well as Radiohead by adopting such an honour system.

But honour systems work. Paul Feldman the bagel salesman knows that. LibraryThing has been using such a model for a while, and found that their takings increased once they adopted the system.

A lot of music fans are extremely loyal to their favourite bands. They are just the type of people who won’t take advantage of the fact that you can get music for free. They get such a warm glow from knowing that they are rewarding their idols.

Labels and bands may still be wary. If honour systems don’t convince, the common answer to the problem is to release music for free and use it as a way of generating publicity so that more money can be made from touring. Alan McGee, manager of The Charlatans, who are also now giving away their music for free, reckons that it could even triple the size of the crowds at gigs.

Merchandise is also becoming increasingly important. There is a theory that the reason concert promoters don’t charge the market value for gig tickets is because keeping the price low attracts a younger audience. These youngsters will go on to buy loads of t-shirts from the merchandise stall, so in the end everyone involved makes more money. Some bands are even stopping selling CDs at gigs for fear of cannibalising t-shirt sales.

So the future of music is gigs and t-shirts. This is great for my wallet. I rarely attend concerts, and I am more and more reluctant to buy t-shirts.

But I think the music industry could still potentially make lots of money from selling physical copies of the music. And my wallet won’t be so happy about that. That will be the subject of my next (and, at last, final) post in the series.

The other day I took my first trip to Fopp since it re-opened. After Fopp’s flopp, HMV bought the name and six of the stores (a far cry from the 120-or-so stores there used to be). HMV probably bought it to stop Gordon Montgomery from making an easy comeback, but they have promised to run the remaining Fopp stores as Fopp themselves ran them.

Immediately people were wondering if HMV had bought the right stores. I guess they are in a much better position to know which stores are profitable and which are not. But they bought the Rose Street store in Edinburgh. It’s a good shop, but there are already two HMVs within a stone’s throw. The one on Cockburn Street was smaller but only has that dusty Avalanche for competition. And it was closer to the university, which, for purely self-interested reasons, made it automatically better for me.

Also, a lot of the point about Fopp was the fact that it wasn’t HMV. Nor was it some indie-wank shop. It was something in between, which I thought was just perfect.

During my trip there, I was pleased to see that almost nothing has changed in the Rose Street store. There are only very slight cosmetic differences that only the most anal people (like me) will notice. Price stickers are now HMV-style, as are the receipts. But apart from that, most things have pleasantly remained the same.

The prices are still in nice round numbers. There is none of that £X.99 nonsense. It feels good just to hand over a twenty and be done with the transaction with no fuss.

I did try to do my usual thing of looking for a cheap Can album, but although they had loads of Can albums, they were all £15! The same was true for Brian Eno. I guess it’s not inconceivable that this would have happened in the old Fopp, but it did ring a minor alarm bell. Hopefully it is just my imagination. Thankfully, in general, the prices are still pretty good. I bought four albums for £20 (including one Stereolab CD which was just £3! Bargain!), which is pretty good going.

There was something quite striking about my visit to Fopp though. I was browsing there in full knowledge that the shop was almost wiped off the face of the earth, so I was thinking about the business side of things as I was shopping. The thing I noticed above everything else was that almost every single other customer there was a middle-aged man. I was probably the youngest person in the shop. It’s true — kids just don’t buy music these days.

On my way down to Rose Street, I passed the folk specialist Coda store on Bank Street. I wondered to myself, “I wonder how long before that goes?” In fact, I have often wondered that to myself over the years (before today’s music retail woes), but that probably shows my narrow-mindedness about folk music. Today, I suppose most of its customers will be the more loyal middle-aged men. That was probably a curse just a few years ago. It’s surely a blessing now!

I am a big fan of the CD format, and I love to have a physical copy of any music that I have. Then it feels like I really own it, and is a signal that I really value the music rather than just downloading any old crappy MP3 and throwing it in the recycle bin if I don’t like it.

It’s a bit like a story I read about in a very exciting book called A Logic of Expressive Choice by Alexander A. Schuessler. It’s a bit dry, but it has some neat examples to demonstrate its points.

(I don’t have the book to hand, so my memory of this example is quite sketchy, but you will get the general idea.) One of them involved a man who, every year, would camp outside to buy tickets to something or other. He waited an extraordinarily long time to ensure that he was at the front of the queue so that he could get the best tickets.

One year the venue decided to just give him the best tickets anyway, as a kind of token of appreciation (or probably as a publicity stunt). The man was outraged and refused to accept the tickets. For him, his value came from the waiting, not from acquiring the tickets themselves. He took pride in waiting for ages. It was his way of saying to the world, “Look how much I love this thing! I will wait for ages to make sure I see it!” When the theatre offered him the tickets, he was robbed of his chance to express himself in this way.

I think I am the same with music. Sure, I could illegally download every song in existence for free. I could even download them legally and pay for them. But I wouldn’t have anything to show for it. I like to look at my music collection and think to myself, “blimey, I’ve got quite a lot of CDs now”. Even though this means that I am losing space in my room.

I think most people growing up these days won’t value music like this. They have access to far more music than they can possibly consume, and they just do it. They just download disposable albums without thinking about it and don’t give the music their full attention. (I can see myself as an old man with my pipe and slippers, fondly remembering the days of CDs, when youths respected music.)

But a lot of people are saying that CDs are doomed. Vinyl will still have its niche, but CDs won’t be around any longer. Imagine that! I could end up having the opposite dilemma to the previous generation — I will have to convert my entire CD collection into vinyl!

As much as I dislike this situation, it has to be said that there is not much going for music retailers these days. They are dropping like flies. And when they are not dropping like flies, they are hurriedly rearranging their deckchairs in preparation for the sinking.

HMV has launched its “next generation” stores. “Download hubs”, “gaming stations” and smoothie bars. Just don’t mention music.

Richard Branson has just sold his Virgin music stores. This is incredible because it is the first time in three decades that Richard Branson hasn’t had his fingers in the music retail pie. It was music retail where he started, so for Virgin to be pulling out of it altogether, you know that things are just not going well at all in the music retail world.

As though my shoe woes (shoo woos? shoa woas?) were not bad enough, I recently made another purchase which I almost instantly regretted. But I knew that I would in advance.

I have always had bad luck with headphones. They always fail really quickly. I guess in a sense this is to be expected, since there are not many objects in existence that have to traipse around the world being hurriedly stuffed into your pockets, or being violently untangled. So given that headphones are quite fragile objects in the first place, it shouldn’t be a surprise when they stop working.

As such, I am never sure which approach I should take when buying headphones. Should I splash out on an expensive pair of headphones in the hope that they will be a bit more durable? I should I just buy a rubbishy pair for a few pounds and buy a new pair every few months? Of course, being the wishy-washy, indecisive, Lib Dem-voting kind of guy I am, I normally opt for the in between option — something that costs somewhere between £10 and £20 and lasts a year or so.

I have completely fallen out with the kind of headphones that go inside your ear. Compact they may be. But thanks to my ears being different sizes, I often find that one of them keeps on falling out, while the other one doesn’t fit in properly and hurts like hell.

So a while back I decided to get the kind of chunky headphones that sit on your ears. You know, the ones used in The ITV Chart Show logo. Even though that style is more traditionally associated with home listening, you see a fair number of people walking around with kind of medium sized ones. So I set out to find some.

I searched Edinburgh high and low for a pair of the medium sized chunky style headphones that I keep on seeing people wear. I went into every Kirkcaldy shop that I could think of, even taking a major excursion to the Currys on the outskirts. But I simply could not find them.

In the end, I had to go for a pair that I saw in HMV. I was a little bit sceptical because the description did not say that it was specifically designed for portable music players. But the picture on the box made it look portable enough. I could even see the headphones themselves, and they looked fine to me.

The problem with buying headphones is that it is not always easy to tell exactly what you are buying. Unfortunately, the pair that I went for were about as portable as a tank. It might have been okay if it weren’t for the obscenely long cable, which on its own could take up the space of a normal pocket. Plus, they make my ears feel as though they are in an oven. Still, they are good for home listening (I am using them this very moment, in fact).

Because I am once bitten, thrice shy by nature, I decided after that to persevere with my old in-ear headphones, even though they kept on cutting out and giving me excruciating pain. Last week, though, they finally kicked the bucket. No sound was made unless I held the cable in a really awkward way that would cause people to give me funny looks.

Because I am addicted to music — constantly plugged in — when they do fail, it is a major crisis. Going cold turkey on music will never last long for me.

Even though I do almost all of my shopping on the internet, I did not want to take the risk with headphones. I had trouble enough telling whether or not they were suitable even when I could hold the packaging in the flesh. There was no way I could let the cozy glow of the computer monitor to guide me through this one. So I just had to go to HMV and buy whatever pair I could get my hands on.

The only suitable pair was the ones that I had bought before, with the fifteen metre long cable. There was a plethora of the kind that go inside your ear, but I wasn’t touching them for the reasons I noted above.

The only other kind were the ones that clip on to your ear. I had a pair like this before, and they also hurt my ears. Probably something to do with the fact that they clipped on to them.

But being the only suitable pair, I just decided to buy them. Plus, they were Sennheisers — and Sennheisers are meant to be good, right? So I keep on being told, at least.

I had a pair of Sennheiser in-ear ones before. I didn’t think much of them though. Nothing particularly wrong with them, but they seemed a bit bog-standard to me, particularly given the reputation Sennheiser have. I just put it down to the fact that it was the pair that I got free with my iRiver.

So, what about my new headphones then? The most muffled headphones I have ever used in my life. I could tell immediately. It is a bit like listening to music through water. And they hurt my ears. And they have a neck band which means that I can’t even sit back when wearing them.

Sennheiser? Sehr scheisse more like!

I first smelled a rat about Fopp’s financial security last week while I was working in Cumbernauld. The Woolworths there has a Fopp directly opposite, and I noticed one night that it closed earlier than usual. The following day it never raised its shutters — it was “closed for stocktake”.

I thought that was really odd. The store must have only been open for about a week; two weeks maximum. Why would a store need to stocktake when it had only been open for a maximum of two weeks?

It does not take a genius to work out that something might have been amiss, but I never imagined that it would be a company-wide problem. I suspected it was just a problem with the Cumbernauld branch specifically, not the entire chain.

I considered the possibility that Fopp as a whole might be in trouble. But I quickly discarded this, given the fact that earlier in the year they had optimistically bought several of the Music Zone stores which had gone into administration at Christmas. That is not the behaviour of a company that is in trouble.

When I received a couple of texts from Twitter about the health of Fopp, alarm bells began to ring again. The Cumbernauld Fopp store with its shutters down did have wider significance. It seems as though Fopp is in major trouble.

After work I brought the Twitter messages up in a conversation. I learned that the also recently-opened Glenrothes store has also mysteriously had its shutters down recently.

I came home and immediately searched Google News for information on the situation with Fopp. Seemingly, every Fopp store in the country was 50 Fopp stores were closed last Friday for an “extraordinary stocktake” (whatever the hell that is), but the company bullishly reopened its doors the next day.

But yesterday Fopp halted its online ordering service and stopped accepting credit cards at its tills. That sounds like a company in major trouble.

But as if that wasn’t enough, this evening I have read (via DJ Martian) that some workers will not get their scheduled pay packets tomorrow. Moreover, some Fopp stores will not be opening their doors in the morning.

Sitting here today, it is easy to say that Fopp simply over stretched itself. Ever since this year began, with the acquisition of the already faltering Music Zone stores, Fopp had completely changed its position in the high street.

Not so long ago, it was the sort of place that you would only find in a major city — Dundee or Edinburgh were the closest stores to my town. Suddenly, Fopps were opening all over the shop, in places like Glenrothes and Cumbernauld (I do remember being surprised to see a Fopp there when I first saw it).

Somehow, it just didn’t seem right. In a way, suddenly you would be more likely to find a Fopp in any one town than an HMV. That’s how it felt to me. And that was a situation which — while I was glad about it — just didn’t seem to make sense.

For this reason, I had assumed that Fopp must have been in extraordinarily sound financial shape. Seemingly, that is not the case. It looks as though they have just overstretched themselves too far over these past few months.

If Fopp goes into administration, I would be immensely sorry to see it go. When I first visited a Fopp, I wasn’t terribly impressed. But I soon learned to love it.

In fact, Fopp is the most dangerous shop on the High Street. All too often I would enter a Fopp for a cursory browse, or looking for a particular release. I would always emerge with an armful of bargain £5 / £6 / £7 CDs that I hadn’t been looking for.

Just last week, the day before the mysterious stocktake, I went in to the Cumbernauld store to buy the new releases by Simian Mobile Disco and Justice. I came out with the Sneaker Pimps album that I had been putting off buying for many, many years. I also chose the cheapest of the Can CDs, to add to my slowly growing collection of Can CDs. Fopp was that kind of shop. You would surprise yourself with what you ended up buying.

If Fopp goes, what is left? Even though its recent expansion felt odd, Fopp was a trusty friend unlike no other record shop. Smaller indie shops feel dusty and unwelcoming. The likes of HMV are expensive and sometimes lack selection. Fopp is (was?) a perfect in-between situation.

When I visited the BBC News website today to look for news on Fopp, I instead found news about how HMV is struggling. If even HMV is feeling it, it is fair to say that High Street retailers — especially those specialising in entertainment — are in big, big trouble.

Without Fopp, it is fair to say I would probably no longer buy CDs on the High Street. I would be left with online retailers alone. But the obvious next question is: How long will I be buying CDs for, before the world goes MP3-only? What a sad world that would be.

Update: It is confirmed. BBC News: Fopp closes down its 105 stores.