Sales decline stabilising at HMV

Sales are still on the slide at struggling CD and DVD retailer HMV but the rate of decline has stabilised, and there are signs that the change of focus to portable digital products is working.The company said like-for-like sales in its retail division were down 15.1% from a year earlier in the company's first quarter. That performance was little changed from the previous financial year, when HMV UK & Ireland's like-for-like sales declined by 14.8%. Total sales in the 18 weeks to 3 September were even worse, down 21.8%, affected by the closure of 29 stores. With the group's live music division included, total sales declined by 19.4% from the corresponding period of last year.Chief executive, Simon Fox, said: "HMV Live enjoyed a good summer festival season, with attendances up by over 20% on a like-for-like basis, and by over 30% in total, and on 6 September we successfully opened the HMV Ritz, a new 1,500-capacity venue, in Manchester.The company recently got shot of HMV Canada and Waterstone's and completed a refinancing, and following "the achievement of these critical steps," Fox said the group is highly focused on its turnaround plans."Overall, our plans for the Christmas trading period are on track."The group was keen to emphasise that in its technology division, like-for-like sales in its initial six 'Fast Forward' stores have continued to grow by over 100%. Changes in the sales mix towards a greater emphasis on the group's "enhanced technology offer" will be rolled out to the majority of the group's 150 stores during September, the firm said. The share price was unchanged on the announcement of the trading update. NR