HMV has ambitious plans to build on its position as what it calls the last remaining entertainment specialist in the high street, according to a strategy update issued today.
What this seems to mean in practice is increasing the number of new products in HMV's stores - including technology and "entertainment-inspired fashion" - as well expanding its live music and digital presence following the acquisition of Mama and the joint venture with 7digital. It expects earnings of around £15m from live activities in 2012.
With the demise of Borders, chief executive Simon Fox believes he can turn around the company's Waterstone's chain by allowing branches to mount local promotions, increasing non book sales and increasing efficiencies.
In all it has targeted £25m more cost savings by 2012, £10m of those in 2010/11. It expects to be debt free by 2013 despite the cost of the Mama purchase of capital expenditure of £40m a year.
The market seems to like all of that, and HMV's shares are up 2.6p to 81.4p.
