Scunthorpe HMV store will remain as retailer plans '60 closures'
A LEADING retailer of music, DVDs and computer games has given a vote of confidence to Scunthorpe.
The boost came after HMV announced plans to close about 60 branches.
HMV bosses promised "aggressive action" after the chain reported a 12.6 per cent drop in sales in the ten-week period up to January 1.
As part of the action the company has also identified a further £10 million per annum of cost savings across the group.
But Gennaro Castaldow, spokesman for HMV, said: "We are only looking at closing a relatively small number of stores – less than ten per cent of our combined store estates, spread across the HMV and Waterstone's chains.
"This move is, ultimately, aimed at strengthening both our core businesses by focusing on those areas, such as large city conurbations.
"In these areas we may have a retail overcapacity in relation to the local demand, or leases are due to end and it may no longer be commercially viable for us to renew them.
"We are pleased to say that our store in Scunthorpe, which is an important location for us, does not fit in with these criteria."
In a trading statement yesterday, the company revealed the festive peak trading period had been "significantly undermined" by the severe weather in the UK.
HMV started trading in the town's Parishes shopping mall in November 2003, following a £350,000 investment on the 3,500sq ft unit.
Currently the store, which offers shoppers a choice from more than 13,000 CDs, DVDs and computer games, employs ten full-time and part-time staff.
The pledge by HMV is good news for the town, following the loss of Marks & Spencer which will close today.