Vinyl revival aids HMV turnaround Xtra-vision
Transcription
Vinyl revival aids HMV turnaround Xtra-vision
Newsletter Vinyl revival aids HMV turnaround like sales increasing by 0.5%, HMV managed to increase its market share to 22% of the visual market, making it the largest retailer of DVD and Blu-ray in the UK over the key Christmas trading period. HMV UK provided further evidence of its resilient trading strategy at the end of 2014, revealing a 1.5% increase in like for like CD sales and 0.5% increase in DVD and Blu-Ray while sales of vinyl albums rose by 170% year-on-year. Total sales reached £365.7 million in the year to December 2014 despite a 34% reduction in retail space. Since its acquisition by Hilco Capital in April 2013, HMV’s property portfolio has been restructured with many stores relocated to smaller locations better suited to the product offering. In the two weeks before Christmas, HMV was the UK’s largest retailer of physical entertainment products, accounting for one in three sales of CDs and DVDs. Vinyl sales in the week before Christmas were the highest at HMV since the mid-1990s as the vinyl revival continued to accelerate. With fewer blockbuster movie releases than normal in 2014, the DVD market came under more pressure with a decline of 13% overall. However, with like for Q4 2014 Xtra-vision doubles footprint Following a successful trial in 2014, Xtra-vision has announced a partnership with grocery market leader, Musgrave, that will see 80 Xtra-vision Xpress vending machines deployed across Musgrave’s SuperValu and Centra stores. Over 300,000 customers signed up to HMV’s renewed Pure rewards scheme during 2014, qualifying them for front-of-line access to over 250 live in-store gigs and signings, as well as an increasing number of ‘money can’t buy’ gifts and experiences such as red carpet movie premieres and overseas VIP trips to The deal will bring the total number of machines, which provide DVD and Blu-ray rentals for €2.99, to 100 in the Republic of Ireland with plans in place to extend the rollout to Northern Ireland later in the year. international music and film festivals. The programme of hmvLive in-store events was significantly ramped up during the year with over 40,000 customers and Pure members attending gigs and signings across the country. HMV p2 ➤ www.hilcocapital.com The new machines will effectively double Xtra-vision’s presence in Ireland with just under 200 locations in total between the retailer’s standalone stores and the Xtra-vision Xpress vending machines. Newsletter ➤p1 has enjoyed support this year from artists including Sam Smith, Ed Sheeran, Take That (pictured on previous page), Olly Murs, Kasabian, Clean Bandit and many others with an increasing number of events streamed live on hmv.com from the company’s event venue, 363, on the second floor of its famous Oxford Street store. Denby group ends sale process sale process that was initiated in February. The recent performance of the business and substantial growth in its international markets in particular convinced Denby’s shareholders that its strong performance will continue to build in the coming years. Additionally, the company announced the departure of Garry Biggs after serving 10 years as Denby’s Managing Director and the appointment of former GHD Chief Executive, Sebastian Lazell (pictured), to fill the role. Paul McGowan, Chairman of Denby and Chief Executive of Hilco Capital, commented: “I would like to thank Garry for his leadership and contribution to the business during his time with Denby.” Following another successful period of trading in 2014, Denby Holdings was officially taken off the market by its shareholders and board of directors at the end of the year, bringing to a close the business The currently non-transactional, editorial and content website hmv.com (pictured) welcomes an average of one million unique visitors every month and is set to be rolled out to Ireland and Canada in early 2015 with local content editors in each territory. hmv.com is set to be integrated with full ecommerce capabilities during the first half of 2015, marking the company’s return to selling CDs, DVDs and merchandise online in all of its operating territories. “Sebastian is a proven executive with a track record of delivering both top line and bottom line growth. We have owned Denby now for over five years and look forward to working with Sebastian to take this great British business forward.” HMV Canada completes refinancing The HMV Canada team made the bold move of launching a new, transactional website just ahead of the Black Friday weekend, a period of the retail calendar more associated with well known ecommerce sites collapsing under the strain of unprecedented demand than new sites launching. Thankfully, the relaunched hmv.ca, which sells CDs, DVDs and entertainment merchandise, proved an immediate success and made a significant contribution to HMV Canada’s best ever Black Friday. The business notched up sales in excess of $7 million over the weekend as Canadians rushed 2 Hilco Capital Newsletter Q4 2014 online and into stores to pick up exclusive deals and earn bonus Pure points. The retailer also found time to open a new ‘bricks-and-mortar’ store in Vancouver on 1st December, bringing its total retail estate to 109 stores. Closing another successful year, the company completed a refinancing of its banking facilities with Bank of Montreal in late December. The transaction, which provides the business with a $30 million facility though to 2017, demonstrates a vote of confidence in the HMV business from a major Canadian financial institution. www.hilcocapital.com Newsletter Double digit growth at Kraus Group Busy Q4 for Hilco’s Retail Agents in 2012, continued to gather momentum during the year with a streak of nine consecutive months of year-on-year sales increases in Canada, while the US division has enjoyed sales increases for 15 of the past 16 months. November saw Kraus USA achieve its first $1 million day as a result of a targeted carpet tile promotion which landed the company 11 new customer accounts. Flooring manufacturer and distributor Kraus Group reported double digit growth for the year, with total revenues up 20%. Ending 2014 on a high, the reinvigorated business saw December sales increase by 26.2% over the prior year. Several new product launches contributed to the company’s success with the ‘Touch of Euro’ hardwoods and ‘Culbres’ luxury vinyl tile (pictured) both exceeding initial sales forecasts by 500%. The turnaround of the company, which was acquired by Hilco Capital’s Canadian arm, Re:Capital Canada, The continuous improvement programme at the company’s Strudex manufacturing plant saw 11 reciprocating compressors – which were installed 45 years ago – replaced by just two high efficiency rotary compressors. The new units will reduce Kraus Group’s annual electricity bill by $100,000 while saving 2.8 million litres of water a year which was used to cool the old units. The waste heat from the new system will instead be used to heat the Strudex buildings. The compressor replacement programme was awarded a six figure grant by the government of Ontario’s ‘saveONenergy for Business’ scheme. Hilco launches recovery audit firm Hilco Capital has launched a new business unit, Hilco Profit Recovery, to provide recovery audit services to identify and recover overpayments and unclaimed rebates for its clients. from a variety of industries, including accounts payable managers, qualified accountants, lawyers and surveyors. The team brings unparalleled experience in recovering lost profits for major public, private and third sector organisations across Europe. Hilco Profit Recovery works on a completely risk-free, ‘no recovery, no fee’ basis, while future-proofing its clients by providing targeted recommendations for financial process improvements. The Hilco Profit Recovery team, led by Philip Fernandes, consists of experienced professionals For further information, please contact: [email protected] www.hilcocapital.com Hilco Capital’s retail consultancy team was pressed into action by a number of retailers and professional advisers in the fourth quarter to plan and operate stock clearance and store closure projects. The Retail Agents team was engaged by KPMG to operate the store closure and stock wholesaling processes for cutlery brand, Viners, while Duff & Phelps used Hilco’s team to conduct a Store Closing sale at department store JR Taylor in Lytham St Annes. Retail clients included a continental department store group, a UK home improvement chain and a fashion retailer. Hilco’s Retail Agents also implemented and managed relocation sales at several HMV stores in the UK that were moving to new sites as part of the entertainment retailer’s ongoing rightsizing strategy. Hilco Capital Newsletter Q4 2014 3 Newsletter Clipper Marine wins Boat Show award Thanks to everyone who joined the Hilco Capital team on Clipper Marine’s stand at the London Boat Show in January (pictured). As always, the show provided a welcome break from the post-Christmas blues while the charity raffle raised £1,000 for Children With Cancer, thanks to our guests’ generosity – a sum which Hilco Capital is pleased to match. Charters by Clipper Marine. Congratulations to Duncan Lathwell from RBS and Gillian Martin from Gately LLP who both win skippered charter days courtesy of Bavaria Yacht Prior to the London Boat Show, Clipper Marine enjoyed a very strong end to the year with 46 boats sold in the fourth quarter, including five in December. The show was particularly successful for the Clipper team as they sold a total of nine boats during the event and went on to scoop the Garmin Award for Outstanding Customer Service at the Motor Boat Awards, held to coincide with the Boat Show. NEWS FROM ACROSS THE POND Hilco Global formed a partnership with private equity firm, Redwood Capital, to redevelop the 3,100 acre Sparrows Point site in Baltimore County, Maryland. Formerly a steelworks, the new development will create Sparrows Point Terminal, a state-of-the-art, tri-model transportation centre, featuring a major seaport and a truck and rail logistics centre. Department store group, Saks, appointed Hilco Fixed Asset Recovery to liquidate furniture, fixtures and equipment from its former Saks Fifth Avenue store in Sarasota, Florida and an off-price Saks Off Fifth store in Minneapolis. HFAR was also engaged by PetSmart to liquidate six closing locations during Q4. HMV’s Nipper still London’s top dog Hilco Streambank was retained to sell the IP assets of South Africa based international childrenswear brand, Naartjie Custom Kids. Assets include the worldwide trademark portfolio, websites, domain names and databases. winning entry to a public caption competition – and began using it on the company’s gramophones and record labels. The brand proved so enduring that eventually The Gramophone Company itself – including its famous shop at 363 Oxford Street – became known as His Master’s Voice and latterly, just by the initials, HMV. Hilco Industrial acquired and will sell the excess assets of Access Business Group, a manufacturer of products for Nutrilite, the world’s leading brand of vitamin, mineral and dietary supplements. Assets include oxidisers, boilers and dust collectors as well as pomegranate and alfalfa crops, palm trees and aloe plants. HMV’s world famous brand mascot, Nipper, was honoured with a blue plaque in December. The British Plaque Trust erected the memorial at 126 Piccadilly in London, the building in which artist Francis Barraud created the original painting of Nipper, ‘Dog Looking at and Listening to a Phonograph’, which he went on to sell to Emile Berliner, the inventor of the gramophone. Berliner had Barraud paint over the Edison cylinder phonograph that was originally featured to show one of his gramophones, retitled the picture ‘His Master’s Voice’ – the The new plaque is one of a number of memorials to Nipper in the UK, including statues and plaques at his birthplace in Bristol and resting place in Kingston-upon-Thames. Hilco Real Estate was engaged to sell properties across the US, including an 130,000 square foot shopping centre in Alabama and a 550 acre residential community in South Carolina. Published by Hilco Capital Limited, 80 New Bond Street, London W1S 1SB · Tel (0) 207 317 2050 · Fax (0) 207 317 2051 · © 2015 Hilco Capital Limited · All rights reserved 4 Hilco Capital Newsletter Q4 2014 www.hilcocapital.com
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