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HMV close flagship Oxford Street store and continue to undercut their own shops online.

HMV who set up HMV.com in Guernsey in 2005 and since then have consistently undercut their own stores by charging low VAT free prices on HMV.com,  have announced that they are closing one of their flagship London Stores on Oxford Street,  a landmark in UK music retail. Frankly as the only Channel Island VAT free online  retailer with VAT paying shops around their necks RAVAS are surprised they have lasted this long. We’d be very surprised if more shops did not close. In the meantime HMV continue to undercut all remaining mainland music retail including their own shops. We understand that one of the most frequently asked questions of HMV Store managers has been why is the shop more expensive than the HMV internet site? Apparently customers are paying more for the ‘retail experience’. Nothing to do with avoiding VAT then ?

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2 Responses to HMV close flagship Oxford Street store and continue to undercut their own shops online.

  1. As a CD and DVD retailer just off Oxford Street I’m pleased that HMV have passed on their lease but its a shame its not the shop nearest my store! One drawback is that they’ve realised £14 million by doing it. Their share price is still dreadful (62% down in the last 2 years) and I’m sure closing the loophole will see it plummet even further. Our business needs a strong national retailer like HMV and I for one want to see them do well, but on a level playing field.

  2. The fact HMV have been undercutting their own shops for five years shows how ludicrously distorted the CD and DVD market has become. What exactly was the game plan ?