FOR a certain generation, HMV was a much-loved childhood haunt where many happy hours were spent flicking through posters and queuing for the latest releases by the chart idols of the time. The digital age has long heralded the death knell for traditional media however, as some members of the younger generation may not ever even own a hard copy movie or album. Nostalgia aside, the likely closure of the 92-year-old business will lead to the loss of a further 300 jobs in this country with 30 employees of the company’s two Limerick stores facing an uncertain future.
The advent of free downloads, and cheaper online sites such as Amazon and CD Wow have been chipping away at HMV’s profits for several years, while prices at the high-street retailer remained relatively high.
The company had hinted in the run-up to Christmas that it was in trouble, however stores continued to issue gift vouchers which Irish and British consumers snapped up in their thousands to give to their loved ones.
Now, just three weeks after Christmas, before most people had a chance to redeem their gift cards, they are for the moment worthless.
HMV Chief Executive Trevor Moore said this week that he is confident that the administration process will “find a solution” and that the company will survive.
If a possible resurrection is to be successful though, consumer goodwill and loyalty is vital.
HMV is likely to lose the trust of customers who feel they were essentially misled when sold vouchers weeks before the company entered administration, as well as the disappointed voucher recipients, if it does not reverse its decision not to honour them.
If its Irish stores reopen, HMV bosses would be wise to heed the advice of the National Consumer Agency which this week called on the company to accept vouchers with immediate effect.
The warning ‘caveat emptor’ is certainly apt in these certain economic times as the fall of a number of retail giants and countless gyms and leisure centres has left customers substantially out of pocket with little or no comeback.
