Mixed signals: buying records on your high street

Barely a fortnight after Sainsbury’s announced that it will stop selling CDs and DVDs in the face of streaming services dominating media consumption, and just a few days after the second Record Store Day ‘drop’ for 2021, dear old HMV has celebrated its 100th birthday by announcing that it is planning to 10 new shops this year.

While this is hardly a raging endorsement of physical media continuing to enjoy rude health, it at least is a positive sign that the oft-predicted death of such formats is being kept at arm’s length. Sainsbury’s said that its decision was the result of consumers increasingly getting their music and films online, although conversely it added that it would continue to sell vinyl records in some stores, a reflection of vinyl’s hipster appeal amongst everyone from teenagers to the middle-aged getting back into the format and succumbing to impulse buying while out doing the weekly grocery shop.

Notably, Sainsbury’s supermarket competitors are continuing to sell CDs and DVDs, so the decision isn’t necessarily the shock headlines might suggest. There is no denying that CDs, DVDs and even Blu-ray Discs are in long-term decline: I’ve blogged before about the minor conflict this has placed me in, having worked for Philips on the consumer electronics industry’s launches of DVD and Blu-ray Disc, the company having co-developed the CD with Sony in the decade before, starting the rise of the 12cm ‘optical’ disc as a multi-faceted carrier of digital entertainment and media content.

But, progress is progress. The irony of all this is that the CD and its various offspring were meant to kill off the vinyl record, and yet that format has enjoyed a resurgence, with UK salesreaching 4.8 million in 2020. Indeed, the BPI says that LP sales will eclipse CDs this year for the first time since the late 1980s. “Demand [for CDs] has been following a long-term trend as consumers increasingly transition to streaming,” a BPI spokesperson told the BBC. “Resilient demand is likely to continue for many years, enhanced by special editions and other collectible releases. If some retailers now see the format as less of a priority, this will create a further opportunity for others, such as independent shops and specialist chains such as HMV, to cater to the continuing demand.”

While I rarely buy a Blu-ray edition of a film or a box set these days (I now share a house with my family and don’t have the space for masses of media as I had in my single days, so online services make a lot of sense) I do still buy music, with a combination of vinyl, CDs and digital copies, depending on my mood, collectability (e.g. special editions) and even whether I’m purchasing an album on spec, as opposed to a must-have I might want to have on display. I wouldn’t be the only one who sees vinyl collecting as much as an Instagram fetish as about music appreciation. I am also of the High Fidelity mentality, one of those middle-aged men who still derive pleasure from rifling through racks in musty independent shops staffed by ever-so-slightly intimidating cooler-than-you types. It’s an age-old tradition and long may it continue.

There is, though, still a place for the HMVs of this world. When the chain went into administration in December 2018, threatening anyone with entertainment media on their Christmas lists, it cast a pall over the future of buying and owning records. One of HMV’s attractions, from a mass consumer point of view, was that it made ‘supermarket’ shopping for entertainment easy, with multi-buy bundles (e.g. “2 for £10” offers) a cunning ploy to part cash for more than you might have entered a shop in search of. My CD collection is certainly the beneficiary of deals like that (along with regular holiday raids to American chains like the now defunct Tower Records and Amoeba, particularly during the days of more favourable dollar-pound exchange rates).

News that HMV will open 10 new outlets this year is a glimmer of hope on a couple of counts: firstly, COVID-19 has hit the ‘non-essential’ retailing sector hard thanks to high street lockdowns over the last year and a half. This has been accompanied the double- or even triple-whammy of media sales shifting to core online retailers like Amazon for home delivery convenience, along with the continuing growth of streaming services. Doug Putman, the Canadian entrepreneur who bought out the HMV brand from administration in 2019, and has since reopened 107 sites, has warned that the future of on-premises retailing in the UK is still not guaranteed.

Doug Putman
Picture: Joe Fiorino/Canadian Broadcasting Company

Putman says the government needs to urgently fix business rates, which are based on property rates but are notoriously slow to adjust to market levels, resulting in retailers and other high street businesses continuing to pay very high costs in the face of rising competition from online services with a lower cost base. “If the government doesn’t fix the rates, high streets are going to see a lot more vacancies,” says Putman. “Business rates just don’t make much sense. You can pay zero rent and not make a profit on a store as rates are too high.” 

As seen recently by announcements by Gap and other fashion retailers, in-store shopping is facing an existential crisis, and the pandemic hasn’t helped, even accelerating its demise. It is sad, says Putman. “Outside of the illness, when you look at people’s lives, a big part of that is walking outside and going to the high street and doing some shopping. When you see bookstores and coffee shops, and HMVs, closed and everything online it is not as much fun as it used to be. Hopefully people have seen this world where everything is Amazon and it is not all that great.”

Steven Wilson launches his album To The Bone at the HMV store in Oxford Street

One of HMV’s priorities will be to restore its flagship to London’s Oxford Street. The retailer opened its first HMV shop in 1921 when, as the Gramophone Company (which became EMI in 1931), it took over an old clothing shop at no 363. The shop was closed as part of the administration process at the end of 2018, but Putman has said he would like to find a new location in Central London. The prospects of that, however, amid continuing schism in both domestic and foreign tourism to London, might make it unlikely in the short term, given that the cost of commercial property in the city is driving retailers out, rather than drawing them in.

The other challenge for HMV will be market dynamics. While Sainsbury’s might be getting out of CD and DVD sales in the face of slowing turnover for the formats, others, like Tesco and Asda will continue to take “market share” by undercutting traditional music retailers - be it HMV or the independents. Industry writer Graham Jones has noted that supermarkets stick to a narrow choice of CDs from popular chart acts like Ed Sheeran, rather than back catalogues and more eclectic fare. Indeed, in 2008 Jones discovered an independent record shop buying bulk copies of the latest Coldplay CD from Morrisons, rather than wholesale from the record company because the supermarket offered them for less.

Speak to more hardcore music consumers, as opposed to impulse shoppers, and the love of physical media continues to drive behaviour. One of the pillars of CD and vinyl buying to begin with, over streaming, is the belief that it’s always available, a point that does suggest continuing Luddite sentiment that the Internet can go down, or that titles can disappear due to licensing windows ending. This conveniently ignores the fact that lugging 12-inch records and even CDs around isn’t so convenient if you don’t have anything to play them on. But there’s no denying the emotional bond that people - yes, like me - have to the physical format. “I can't imagine a world where media is not in your hands and not yours,” one seasoned consumer recently told the BBC in response to the Sainsbury’s news.

There are, then, two issues at work when it comes to HMV expanding, a little further, as it tries like so many other bricks-and-mortar retailers to remain afloat on the high street. Firstly, there is the inexorable rise of online shopping - regardless of the pandemic - which is a convenience that is now just an established fact. And secondly, in HMV’s case, there is the cultural shift away from physical ownership as the shift continues to digital.

“People obviously love going out shopping,” Doug Putman told the BBC this week. “They like touching and feeling and that’s something that online is not going to replace. He remains sure that the high street, despite increasingly gloomy predictions, will not become one long parade of charity shops and coffee chains, as so many have become. “I’m still very optimistic on the [HMV] business and business as a whole on the high street,” Putnam added. “I still think the high street is just something so special.” He has a point, but it’s one that flies in the face of convention, and that high streets have become centres of the service economy rather than the destinations of discovery they once were. I do know that if HMV were to open up round the corner from me I’d probably be forever in it, but I suspect that I - and perhaps my vinyl-loving teenage step-daughter - would be the exception.

Put the needle on the record...

(Picture: Naomi Davison)

In a week that began with the ever-youthful Gary Crowley talking about his 40 years listening to, playing and talking about music, one which continued with the premiere of a documentary about singer-songwriter Beatie Wolfe's idiosyncratic approach to making music tangible, Saturday arrives with a celebration of the album itself. For today is the second annual National Album Day, a combined UK initiative of the BPI, the Entertainment Retailers Association and the Association of Independent Music, designed to embrace all that is good, still, about the album as a complete body of musical work.

It comes at a time of continuing mixed emotions about how we consume our music. Just last week I reviewed Sheryl Crow’s album Threads which, she says, is likely to be her last due to the changing consumption model of consumers effectively sequencing their own listening via the pic’n’mix of streaming services. And, yet, at the same time, the 50th anniversary re-release of The Beatles’ Abbey Road went straight into the album chart at No.1 when it was released two weeks ago, something of a reaffirmation of the album format from the very band which, according to music journalist David Hepworth, invented the LP with Sgt. Pepper’s Lonely Hearts Club Band, 52 years ago.

According to National Album Day's organisers, the album as a packaged piece of music remains a robust proposition. 143 million albums, they say, were either streamed, downloaded or purchased in the UK in 2018, a 6% increase on 2017 and worth approximately £1.3 billion. A healthy state of affairs, it must be said, and made shinier by the 4.2 million vinyl LPs sold last year, although this must be still seen as just under 3% of the overall number of albums shifted, even if representing a 25-year high for the format.

Where all these sales are coming from is, actually, hard to identify: friends of mine who used to be dyed-in-the-wool record buyers are now just as likely to be listening to new albums via Spotify, unfussed by either the lack of tactile interaction or the reduced fidelity created by streaming compression. And, yet, the notion that young consumers are eschewing albums-whole for the selectivity of YouTube on mobile-friendly platforms could equally be a misnomer, if the experience of accompanying my 14-year-old step-daughter into Kingston’s Banquet Records recently was anything to go by. What may, though, be preventing today’s teenagers from replicating how I began my record collection at the same age may simply be economics. Paying more than £20 for a vinyl record is certainly beyond most pocket money budgets if serious collation is going to take place.

Visiting the HMV at Bluewater yesterday it was notable how much vinyl had crept back into a shop space that would, as recently as a couple of years ago been occupied by CDs. However, here lies the peculiarity of HMV’s continued survival strategy: the Bluewater shop's most prominent racks contained a strange mixture of new and old - Elbow’s brand new album Giants Of All Sizes sat next to ‘staff picks’ like Steely Dan’s Aja. Nothing wrong with either of those records (and stay tuned for my own review of the Elbow release), but there was an incongruity in what was prominent and what wasn’t. Elsewhere yesterday HMV - the chain that less than a year ago called in administrators for the second time in a decade, resulting in dozens of branch closures - opened its biggest ever retail space, ‘The Vault’ in Birmingham. Covering 25,000 square feet, it promises to be a “nirvana for music and film fans”, with dedicated spaces for vinyl, CDs, Blu-ray Discs and DVDs, as well as a stage for in-store performances. It is a brave move by the chain: even when musicians themselves are seeing their own incomes challenged by the relatively meagre returns from online music services (most make more money these days from touring than they do from releasing records), music retailing via so-called ‘bricks and mortar’ outlets is under threat from the twin terrors of high rents and the likes of Amazon.

In this mix lies the emotional act of buying a record. If you can buy an album for £1 less on Amazon and without the hassle of going out to buy it or the add-on costs of bus fares or car parking, plus that latte in Costa you weren’t planning but had anyway, record shops are heading for an even darker future. That places like Kingston’s Banquet and my favourite, Casbah Records in Greenwich, still appear to be thriving - if challenged by prevailing ‘market conditions’ - is a welcome throwback. HMV’s owner Doug Putnam still believes the need for a physical, tangible music consumption experience is driving their belief in opening a store like The Vault. “We know that people want to stream music when they're out, but also want to physically go in store and purchase something special, something they love, to add it to their collection at home,” he told the BBC.

"We all want human interaction but do we want to pay for it?", countered retail analyst Richard Hyman. "I think [The Vault] is a very courageous venture but it'll need more than courage to make the economics stack up." There is a view that I share that record shops are being kept open by two factors: firstly, old heads like me, clinging on to physical music ownership much as their hairlines recede and their waistlines expand, and secondly, younger consumers being drawn to the niche experience of buying ‘a vinyl’. Certainly a visit, the other Saturday, to Soho’s Sister Ray Records supported the first of these views, judging by the exclusively male, middle-aged clientele.

Their interest, I’m sure, is much like mine - the discovery of albums as complete experiences. It’s why this year’s National Album Day - which is being championed by Elbow themselves, Lewis Capaldi and Mark Ronson - is focusing on the theme of ‘Don’t Skip’, to encourage the discovery and enjoyment of albums as total bodies of work, to be consumed from first to last track as a single, arcing narrative. It’s the consumption experience that David Hepworth drew from with his brilliant tome A Fabulous Creation: How the LP Saved Our Lives, which traces the evolution of the LP through his own experience, his eyes being opened by 1967’s Sgt. Pepper, before seeing it disappear with the advent of the CD and its remote-controlled skipability. ‘Long playing records’ had existed way before The Beatles’ opus but, argued Hepworth, Pepper turned the LP into something other than a vestibule for songs, a package of listening and looking. It was probably the first concept album, launching a series of ‘themed’ records from ever more progressive artists, including The Beatles themselves, but also The Who with Pete Townshend’s rock operas, Tommy and Quadrophenia, Bowie and his recurring astronautical subplots, and of course the prog giants like King Crimson and Pink Floyd, each presenting music as theatrical suites.

Hepworth’s book got to the nub of the album buying experience. It may be considered a cliche to think of nerdish types in record shops pouring over the everlasting trope of gatefold sleeves and Storm Thorgerson cover art, but it was (and still is) part of the total act of ownership, right up to and including the moment the needle was placed on the intro groove, to flipping over to Side 2 and then watching the stylus go back and forth on the outro groove. Hepworth’s description of shared house ownership and the obsession of male housemates with speaker cables and hi-fi separates is certainly one I can appreciate. I’m still a hi-fi separates man to this day. Hepworth, however, saw the beginning of the end for this experience when he first encountered a Sony Walkman when interviewing Stewart Copeland in 1980. If he wasn’t all that enamoured by Sony’s miniaturised music experience, with its tinny headphones, the next few years, with CDs and the arrival of MTV, sounded the death knell for Hepworth for the album as that total, beginning-middle-end experience. Selective consumption had now arrived. Skip-play technology had done for the album. “You can fill your room with the very best loudspeakers,” Hepworth concluded in his book. “You can spend your money on a pristine new copy of your favourite album. It can be produced on the highest quality vinyl. It can feel reassuringly weighty in your hand,” he says of today’s ‘new’ vinyl experience. The really difficult bit, he says whimsically, “will be convincing yourself that for the next 40 minutes you have nothing better to do than listen to that record. Because that’s how it was back in the golden age of the LP. It seemed as though we had all the time in the world.”

Perhaps we have lost patience. Perhaps the instant reassurance some have from looking at their phones every ten seconds is a sign that we have become digitally restless. Strange, then, that the Netflix and Amazon model is largely catered towards those who can binge through hours of box sets in a single sitting. Why we can’t do that with albums, I can’t say, although I could very easily, given the opportunity. As I write this I’m currently on the second consecutive and complete listen to Elbow’s Giants Of All Sizes. Perhaps it’s a rare luxury to be able to do so on a Saturday afternoon, but it’s how I’ve always preferred to hear albums, even delaying getting out of the car to finish up the final track of a CD. From first to final, before repeating and listening all over again, that’s the correct way to do it.

“Some artists see the album as a collection of short stories,” Elbow themselves say in the official National Album Day press release. “We see the album as a novel. Songs are often included or omitted on account of the balance of the overall record rather than on their individual merits.” The band themselves see the television binge model as a parallel: “To suggest the album is under threat because of [streamed] playlists is to suggest that movies will disappear on account of television, they are two completely different things.” Geoff Taylor, the BPI chief executive, backs this view: “The album is where an artist gives the fullest expression to their creative vision at a given moment in time. It’s a musical novel, where multiple themes can intertwine to deliver a cultural experience deeper than a single song, the summit of a performer’s art.” Album ownership, like dogs being for more than Christmas, shouldn’t be about a single 24 hours, be it National Album Day, Record Store Day, or any other such industrial cause. But with some viewing this medium as continuing to hang by a thread, a little indulgence can’t do any harm.

The silencing of his master's voice

© HMV/James McCauley

What Ho!, viewers. It's been a while since I've blogged, but it's the Christmas holidays and, in a welcome break from work (coupled with food-induced imobility), I'm back in front of a steaming keyboard. What has coaxed me out of a lengthy absence from the blogosphere has been the troubling news today of HMV's second collapse in the space of six years, barely three days after gift cards (or "record tokens", in old money) would have been received by teenagers eager to get out and spend their newly acquired wealth on music, video games, DVDs (or, for the more resolution-sophisticated, a Blu-ray Disc) or any other of the home entertainment-related items HMV is still, evidently, selling via its bricks-and-mortar retail outfits. Except that they wouldn't have been. 

The HMV Group Plc, to give the chain its proper name, has become the first casualty of Christmas 2018 after poor sales and 'footfall' (i.e. the number of us walking through its doors) in the run up to the big day. Should the 97-year-old company disappear completely, it will not only wipe out 2,025 jobs but also it's status as the last remaining high street chain selling physical music and video products, unless you count Sainsbury's knocking out Ed Sheeran CDs and Davina McCall DVDs as a legitimate part of the media purchasing culture.

No one, frankly, should be surprised, as sad as this news is. HMV came close to collapse almost exactly six years ago, as the move towards online streaming led to sales diving by more than 10% and HMV calling in administrators. The company was eventually taken over be restructuring specialists Hilco who closed half the group's stores leaving 125 open, including the flagship shop on London's Oxford Street. The restructuring appeared, at least for a couple of years, to work, and in 2015 HMV even overtook Amazon as the UK's biggest phyisca-format music retailer (though that number also included HMV's online sales). Before that milestone, Hilco executive chairman Paul McGowan told The Telegraph in 2014 that the HMV business was now "very profitable" and did not have a single loss-making store left in the UK. Four years ago things did seem to be looking up: quarterly sales were improving by almost 10% and sales of albums over-the-counter were up by 12 per cent. 

The problem with this picture - and you'll understand me typing this through gritted teeth - is that while there have been improvements in the sale of vinyl records (and hats off to HMV for making vinyl gondolas the centrepieces of its stores), these have been somewhat niche sales by comparison to the relentless rise of online streaming services. Why go out and browse for new music or a DVD when it's there on your phone, iPad or PC at the click of a button? The culture I have enjoyed since my teens of curating music ownership and, later, my video library when VHS came along, has been eroded by the convenience of not having to get off the sofa to go and buy it.

I know there's not much point resisting this, Kanute-like. The inexorable growth of Netflix, Amazon Prime (even at the expense of Amazon's own retail operations), iTunes and all the rest has done for the home media library. Up to a point, of course. I can see the point of no longer buying DVDs and Blu-ray Discs: when you can rent (or 'own' them) in high, 4K quality without them taking up space in your living room shelving, it's a no-brainer. And it's not even an argument to say that there are films and box sets that you do watch again and again, because unless you are the most compulsive-obsessive about The Godfather or The Sopranos, you're not going to sit through either every day of the week.

Music, however, is different. Yes, I can listen to a Beatles playlist on Spotify (as I did, perfectly happily while wrapping my Christmas presents last week) via my iPad, but that is not the same experience. Perverse - and somewhat fetishistic - as it may be, as long as I still get a thrill from buying something new from my local record shop, getting it home, unsleeving it and either putting it on the turntable or in the CD player, I will continue to be that middle-aged bloke who readily parts company with a stupid amount of hard-earned for a 'super deluxe edition' of rare and previously unreleased Tom Petty songs. Thus, I'm quite proud to be keeping my local independent record shop, Casbah Records in Greenwich, in turnover. And, before anyone asks, I'll only order something from Amazon if Graham, Casbah's always helpful co-owner, is unlikely or unable to get it in.

At the time Hilco was claiming that HMV was on the up again, Paul McGowan said that it had strategically focused on offering something that other retailers couldn't, like in-store live performances. That, however, might only have a limited appeal, especially in generating impulse purchases. McGowan was, obviously, correct when he said that clearly Amazon or Tesco couldn't and wouldn't compete with that. But here, however, is where independents do the fan experience better. Banquet Records in Kingston-upon-Thames, annexed its main retail space to create a dedicated performance room, and has also become involved in local promotional gigs by heavyweight acts like The 1975. In a high student catchment area like Kingston, that makes eminent sense and hard to imagine HMV matching.

In 2013 retail analyst Mark Saunders told The Guardian that HMV's business model had "simply become increasingly irrelevant and unsustainable". Then music and film downloads accounted for 73.4% of media purchases. Today that ratio is higher still as Netflix, Apple, Spotify and even YouTube have eaten further into what used to be regarded as "home entertainment", but is now available digitally across everything from mobile platforms to big-screen TVs as, simply, an app. Of course, evolving consumption habits isn't the only set of nails being hammered into HMV's coffin. The British high street is currently a turbulent place to be. Hilco's McGowan said, in a statement, that "Even an exceptionally well-run and much-loved business such as HMV cannot withstand the tsunami of challenges facing UK retailers over the last 12 months on top of such a dramatic change in consumer behaviour in the entertainment market," with the chain's collapse coming on top of retailers like Poundworld, Maplin and Toys R Us entering administration, with others like Superdry, Carpetright and Card Factory issuing ominous profit warnings.

HMV's travails, however, go beyond simply being another victim of high street pressures, even if high rents and low consumer confidence have had their impact. The simple fact is that people are now going no further than an app, a mouse click or a remote control button to acquire home entertainment, even if the industry body, the Entertainment Retailers Association maintains that physical music, video and games products still represent a £2 billion market, with the likes of Sheeran and films like The Greatest Showman contributing.

The question for me is, realistically, how long this market will remain. There is a generation of teenagers which, for the most part, doesn't actually own any music or video. And they're not even paying subscription services, either: YouTube does, it would appear, constitute a large proportion of entertainment consumption for digital-native teenagers and twentysomethings. Seeing my girlfriend's 17-year-old-daughter enjoy listening to music on vinyl is one of life's genuine pleasures, but even I know that she and her friends are following a latent fashion. I, for one, will continue to buy albums, but even I've stopped buying DVDs altogether. Mind you, I very rarely have the attention span these days longer than watching a Mock The Week repeat on Dave, so perhaps I'm losing the ability to do anything more than point a remote control at a set-top box. Maybe, even, I'm the cause of HMV's collapse? I hope not. Sad as it is to see a venerable and historic name go into administration for a second time, reluctantly I've got to accept that it's just the way it is, even if with the  chain's demise disappears the emotional enjoyment of endless Saturday afternoons browsing for new music that I couldn't wait to get home, unpack and play. Forget the arguments about sound and picture quality, it's that fetishistic, tactile experience that will die when the physical media experience finally pops its clogs. Today's news about HMV doesn't half feel like that is accelerating.