Amazon and Tesco are top of the entertainment retailer league
The latest data from Kantar Worldpanel* shows that HMV has slipped from its position as Britain’s second largest entertainment retailer to fifth as Tesco takes over the reins and Amazon dominates the top spot.
Elsewhere, digital music sales have grown by 12.5%, helping boost iTunes Music to number three and bringing total music sales back to growth for the first time since June 2011.
Fiona Keenan, consumer insight director at Kantar Worldpanel, explains: “HMV’s recent store closures have hit the high street retailer hard, with its number of shoppers almost halving in the latest 12 weeks compared with the same quarter last year and its market share dropping by 8.4 percentage points.
“Amazon has benefitted the most from HMV’s decline, gaining across music, games and video. It made an additional £4.5 million in the second quarter of 2013 by welcoming former HMV customers and has returned to its record share of the entertainment market – 23.4%, a figure last seen at Christmas 2012. Sainsbury’s was the main grocer to win from HMV shoppers switching store, gaining an additional £2.3 million compared with this time last year.
“Tesco is now Britain’s second largest entertainment retailer with 13.2% of the market, boosted by its ongoing success selling big video releases. It took over a quarter of all spend on The Hobbit: An Unexpected Journey, the biggest selling film in the second quarter of this year.”
Meanwhile, iTunes Music has reached its highest ever share, growing by 2.4 percentage points and now holding 11.3% of the entertainment market. Fiona Keenan continues: “iTunes Music’s record share is testament to rising sales of digital music which have grown by 12.5% over the past year to make up 51.4% of all music. The growth of digital, boosted largely by invigorated digital album sales, has helped the total music market to grow slightly over the past year, despite continued declines in physical music.”
The other major supermarkets have also performed strongly. Asda now accounts for 10.5% of the entertainment market (up 1.1 percentage points) Sainsbury’s has 8.2% (up 2.4 percentage points) and Morrisons 3.7% (up 0.1 percentage point).
Across the market, video game sales have fallen by 27% and DVD sales are also down compared with the second quarter of 2012. Blu-ray, however, is performing well and has grown 27% year on year.
* 12 weeks ending 9 June 2013
Read the previous report here.