By Jessica Strudwick
Tesco puts one fifth of all profits made from the retail industry into its pockets. There are more and more supermarkets opening over night and local businesses are struggling to keep up with their prices. At least 25 local businesses are closing down every week as a result of the big supermarkets domination. A local example of this is Rounder Records in Brighton Square, which closed down after 46 years of business.
However, supermarkets are not the only reason for the struggle of music industries. Rounder Records suggested that they were a business which had been “decimated by downloads (both legal and illegal).” Rounder Records was simply no longer “financially viable.”
HMV, possibly the most loved music store from 1921 are also starting to feel the strain. In the HMV annual report, it was suggested that the audio market is expected to decline in value by around 20% over the next year.
In order to keep up with supermarkets, HMV have revealed that branching into the technology has been one of their best moves yet. In April 2012, technology products accounted for approximately £90 million of HMV’s turnover. This idea is great for expanding multi million pound businesses, but independent stores such as Rounder Records simply do not have the funds to branch out into this market.