In a sad
week for traditional retailing two retail icons, HMV and Blockbuster, have
called in the administrators in the UK.
Both
names are familiar to Australian consumers although HMV closed their last store
in Australia in 2010. The inevitable post mortems have brought up 3 key factors
in their demise.
1. Both companies failed to
adjust adequately to the online trends that started probably 15 years ago.
2. The financial backers of both
companies continued to provide financial support despite declining business
conditions.
3. Consumers stopped buying. The
public disappointment has been loud and clear but the public went to more
attractive options when making their buying decisions.
Failing
to meet the needs of a changing retail environment has ramifications for all
areas of retailing.
