Pure play e-tailer Amazon increased its share of the entertainment market in the run-up to Christmas, outperforming ailing rival HMV, new figures released today reveal.
In the 12 weeks ended December 23rd 2012, Amazon grew its share of the entertainment market to 23.4 per cent, up 3.1 percentage points on a year earlier .
Consumer insights firm Kantar Worldpanel revealed that HMV, which fell into administration last week and had its debt acquired by restructuring specialists Hilco yesterday, had managed to increase its market share despite slowed trading .
HMV’s market share now stands at 17.5 per cent, up 0.2 per cent on 2011 though Fiona Keenan, Consumer Insights Director at Kantar, explained that Amazon’s increasing lead is significant.
“Christmas resulted in an all-time record share for Amazon,” Keenan said.
“The retailer posted growth across all categories, with its most notable performance in CD sales – historically HMV’s stronghold.
“However, this doesn’t necessarily mean it would benefit the most from possible HMV store closures.
“HMV shoppers are more likely to shop in physical stores, leaving the likes of Game and the grocers in a good position if HMV leaves the high street – particularly if they react quickly.”
Supermarket Asda was the only grocer to report market share gain over the festive season, increasing its share 0.8 per cent to 10.4 per cent while rival Tesco reported a decrease of 0.9 per cent over the period.
Meanwhile, online entertainment retailer Play.com, which announced the closure of its retail arm earlier this month as it seeks to become a marketplace-only operator, saw its share decline 1.2 percentage points to 3.2 per cent.
As the results represent a significant boost to online operators, Keenan concluded: “Amazon’s strong performance may not sit so well for the wider industry as a move away from the high street brings with it a move away from impulse purchasing.
“Last year, HMV music customers spent £61 million on CDs picked up while browsing.
“Generating sales in this way remains a challenge for online retailers.”