UPDATED: Shoppers cash in as HMV calls in administrators

Bournemouth Echo: A customer reads the sign outside HMV at Castlepoint A customer reads the sign outside HMV at Castlepoint

Entertainment store HMV, which has three stores in Bournemouth and Poole, has become the latest high street casualty as it called in administrators.

Following discussions among the music retailer's directors, the company last night released a statement announcing it was ceasing trading in ordinary shares immediately - and appointing accountancy giant Deloitte to take control.

It puts 4,000 jobs at risk and means anyone given vouchers or gift cards for Christmas will be unable to use them.

HMV said in a statement: ''The board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the company and certain of its subsidiaries with immediate effect.

''The directors of the company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business.''

In the run-up to Christmas HMV's boss Trevor Moore warned the entertainment group was in trouble as he revealed the chain was in talks with banks over its future following worse-than-expected trading over the festive period.

The chief executive said market conditions suggested the group, which has 238 stores in the UK and Ireland, would fail to meet expectations for the year to April, so would not meet the terms of its bank loans.

HMV said like-for-like sales fell 10.2% in the 26 weeks to October 27, last year, as its pre-tax loss narrowed to £36.1 million, compared to £50.1 million the previous year.

Shares tumbled 39% after the dismal results were published, giving the retailer a market value of just £10.1 million.

Mr Moore joined the group from camera chain Jessops, which itself went into administration last week at the cost of 1,370 jobs across its 187 stores.

At shops in Bournemouth and Poole, most of the customers had come for a bargain.

Chris Beer, 26, of Salisbury, admitted he has probably contributed to the downfall of the long-standing high-street store.

"I saw it on the news that HMV were going, so I thought I’d go in and see what the sales were about. I’m not a regular customer and I use online if anything. I’m probably the reason why they are not doing so well."

Gillian Doward, 63, of Bournemouth, will sorely miss the presence of HMV in the area. "I either use the Poole store or this one and I thought I’d come in just before it closes down. I’m not online so I use it a lot. I know supermarkets are taking over now but I like the old films you get here in HMV. "

Norman Sharp, 84, originally from Yorkshire was visiting the town on holiday and shops in HMV regularly. "I normally use my local store in Leeds," he said.

"I like jazz, classical and middle of the road music, and use HMV for that. Supermarkets have taken all of their business I think."

Lizzie Mbofana, 19, of Bournemouth paid a one-off visit to the store this morning. 

"I came here because it’s closing down. I heard this morning that it was closing so thought I’d come down but I haven’t bought anything.  I normally use iTunes and the internet."

Business was brisk at the Poole branch of HMV, with customers queuing to pay at the tills of the shop just inside the Dolphin Centre.

It was impossible to say whether they had been attracted by the post-Christmas sale, or were hoping for bigger bargains now administrators have been called in.

With stores no longer accepting gift vouchers, reactions from customers have been mixed.

One man came in with print-out from the company's website. “It doesn't say anything about gift vouchers. I'm going to shut you down,” he shouted.

A member of staff offered him the telephone number for the company's customer services department, but the customer walked out.

At the HMV store in Castlepoint, other customers spoke of their sadness at the news.

Amanda Kuhne, 34, a full-time mum from Christchurch, said: "It is sad to see this happen, but online has taken over as it is so convenient with free delivery, and it is a lot cheaper. It is just a shame given all the jobs which might be lost."

Martin Stubbings, 26, a supermarket manager from New Milton, said: "I am a bit shocked, I knew they were having problems but it is a big organisation and I thought they would pull through. It is a great store for gifts and it will be a shame if they close for good."

Sarah Hopcroft, 32, a solicitor from Throop, visited the store on the hunt for a bargain. "I have been in HMV this morning to check out the sales but I never really used to shop there, the prices aren’t very competitive. But it is a shame all these high street shops are going down," he said.

Darren Arnell, 23, a restaurant manager from Southbourne, said he enjoyed the experience of browsing in HMV.

"I always enjoyed going into HMV and browsing, and the staff have always been lovely and helpful. They aren’t much more expensive than online and you don’t have to worry about delivery. They have been pushed out of the marketplace and it is a shame."

Martin Lewis has posted an HMV Q&A on gift cards, refunds and job rights, read it here

 

Comments (25)

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8:21am Tue 15 Jan 13

lemonhead says...

i do hope they can do something,as it willbe awful for the staff if they end up without a job this soon after christmas,lets hope someone can help,or soon we will have no shops in the high streets anymore.
i do hope they can do something,as it willbe awful for the staff if they end up without a job this soon after christmas,lets hope someone can help,or soon we will have no shops in the high streets anymore. lemonhead
  • Score: 0

8:44am Tue 15 Jan 13

EdBmth says...

lemonhead wrote:
i do hope they can do something,as it willbe awful for the staff if they end up without a job this soon after christmas,lets hope someone can help,or soon we will have no shops in the high streets anymore.
Firstly I hope that a buyer can be found and that the staff are not left unemployed in a few months.

As for "lets hope someone can help,or soon we will have no shops in the high streets anymore. "

That someone is you. By thinking about where you buy your stuff. Do you buy it from tax avoiding overseas companies, who contribute little to the UK econom. Or do you buy it in the high street, from a business providing employment and keeping thje High Street alive. This Christmas I bought all but one of my Xmas presents on the high street and yes it was a litte more hassle, but didn't cost that much more

We are the people responsible for the demise of HMV, Jessops etc.
[quote][p][bold]lemonhead[/bold] wrote: i do hope they can do something,as it willbe awful for the staff if they end up without a job this soon after christmas,lets hope someone can help,or soon we will have no shops in the high streets anymore.[/p][/quote]Firstly I hope that a buyer can be found and that the staff are not left unemployed in a few months. As for "lets hope someone can help,or soon we will have no shops in the high streets anymore. " That someone is you. By thinking about where you buy your stuff. Do you buy it from tax avoiding overseas companies, who contribute little to the UK econom. Or do you buy it in the high street, from a business providing employment and keeping thje High Street alive. This Christmas I bought all but one of my Xmas presents on the high street and yes it was a litte more hassle, but didn't cost that much more We are the people responsible for the demise of HMV, Jessops etc. EdBmth
  • Score: 0

8:44am Tue 15 Jan 13

Phixer says...

Its not nice waking up to losing your job but it has been a feature of life for decades. It is often at this time of year as companies assess if they have enough cash to last through the lean months.

HMV & Jessops are just the latest examples of businesses which do not change with customer buying habits and/or change of technology.
Its not nice waking up to losing your job but it has been a feature of life for decades. It is often at this time of year as companies assess if they have enough cash to last through the lean months. HMV & Jessops are just the latest examples of businesses which do not change with customer buying habits and/or change of technology. Phixer
  • Score: 0

8:46am Tue 15 Jan 13

Tripod says...

Sad news for the people who will be losing jobs, but it had to happen somewhen, HMV have been on Death Row for a good number of years.
Sad news for the people who will be losing jobs, but it had to happen somewhen, HMV have been on Death Row for a good number of years. Tripod
  • Score: 0

8:54am Tue 15 Jan 13

Hunter1234 says...

High street is getting worse in 1 week we lost jessops no hmv who's next halfords
High street is getting worse in 1 week we lost jessops no hmv who's next halfords Hunter1234
  • Score: 0

9:01am Tue 15 Jan 13

Huey says...

As a teenager in the 90s I would buy there all the time but can't remember the last time I even went in to have a look around an HMV.
As a teenager in the 90s I would buy there all the time but can't remember the last time I even went in to have a look around an HMV. Huey
  • Score: 0

9:16am Tue 15 Jan 13

jeebuscripes says...

It was only a matter of time.

Who's next?

Interesting read here:

http://www.bbc.co.uk
/news/business-13977
255
It was only a matter of time. Who's next? Interesting read here: http://www.bbc.co.uk /news/business-13977 255 jeebuscripes
  • Score: 0

9:17am Tue 15 Jan 13

Cosmic Crusader says...

I think most people want to support their High Street but reality prevails. In the case of HMV, their prices stopped being price competitive many years ago. They wanted to attract a young customer base and introduced a discount card for students yet even that could not compete with the likes of Amazon.
I think most people want to support their High Street but reality prevails. In the case of HMV, their prices stopped being price competitive many years ago. They wanted to attract a young customer base and introduced a discount card for students yet even that could not compete with the likes of Amazon. Cosmic Crusader
  • Score: 0

10:54am Tue 15 Jan 13

Old Colonial says...

Any company that runs with a £30million loss should have been put down years ago.
Any company that runs with a £30million loss should have been put down years ago. Old Colonial
  • Score: 0

12:00pm Tue 15 Jan 13

BmthNewshound says...

The world of retail has changed beyond recognition in the past few decades. I'm not yet 50 but remember when going to a large supermarket was a novelty, big out of town shopping centres didn't exist and shops were not open on a Sunday.
.
We've all been happy to take advantage of the latest stage in retail evolution by using the internet to bag a bargain so its a bit hypocritcal to shed crocodile tears when High Street retailers become the victims of our desire for cheaper and more convenient ways to shop.
.
Out of interest I wonder how many of the people commenting on the Echo website actually go out and buy the Echo ? Would you pay if the Echo became a subscription website like The Times website ?
.

.
The world of retail has changed beyond recognition in the past few decades. I'm not yet 50 but remember when going to a large supermarket was a novelty, big out of town shopping centres didn't exist and shops were not open on a Sunday. . We've all been happy to take advantage of the latest stage in retail evolution by using the internet to bag a bargain so its a bit hypocritcal to shed crocodile tears when High Street retailers become the victims of our desire for cheaper and more convenient ways to shop. . Out of interest I wonder how many of the people commenting on the Echo website actually go out and buy the Echo ? Would you pay if the Echo became a subscription website like The Times website ? . . BmthNewshound
  • Score: 0

12:45pm Tue 15 Jan 13

The Renegade Master says...

The reason HMV have failed is partly because so many download their music and films these days and partly because they are so expensive!
Why would I buy a blu-ray disc from HMV (which is not on special offer) when I can buy the same product online for nearly half that?
I feel sorry for the staff who have always been helpful when I've been in there, but the world has changed for this industry and the demise of HMV was inevitable.
The reason HMV have failed is partly because so many download their music and films these days and partly because they are so expensive! Why would I buy a blu-ray disc from HMV (which is not on special offer) when I can buy the same product online for nearly half that? I feel sorry for the staff who have always been helpful when I've been in there, but the world has changed for this industry and the demise of HMV was inevitable. The Renegade Master
  • Score: 0

12:45pm Tue 15 Jan 13

nobbythesheep says...

Why would you want high street shops anyway? Its only good for clothes, food and shops where you need to try something out (like furniture).

Everything else you can get cheaper and delivered to your door from the net while not having the hassle of using your Saturday/lunchtime faffing around the shops, when you could be doing better things with the time.
Why would you want high street shops anyway? Its only good for clothes, food and shops where you need to try something out (like furniture). Everything else you can get cheaper and delivered to your door from the net while not having the hassle of using your Saturday/lunchtime faffing around the shops, when you could be doing better things with the time. nobbythesheep
  • Score: 0

1:12pm Tue 15 Jan 13

joncon says...

I love HMV. If only their prices were the same as Amazon's, I would buy from them more often.
I love HMV. If only their prices were the same as Amazon's, I would buy from them more often. joncon
  • Score: 0

1:48pm Tue 15 Jan 13

JDH says...

funny how the chief executive at HMV was also at Jessops and they both go pop within a week of each other. Still i am sure he will be ok. When ever i have been in HMV they have always been busy, Saturday before xmas the Bournemouth store was packed solid, and their prices never seemed more than the supermarkets and a better choice, Trouble is people now are so blinkered towards the Tescos etc of this world and the dreaded internet. that the real high street stores will struggle to keep going.
funny how the chief executive at HMV was also at Jessops and they both go pop within a week of each other. Still i am sure he will be ok. When ever i have been in HMV they have always been busy, Saturday before xmas the Bournemouth store was packed solid, and their prices never seemed more than the supermarkets and a better choice, Trouble is people now are so blinkered towards the Tescos etc of this world and the dreaded internet. that the real high street stores will struggle to keep going. JDH
  • Score: 0

3:08pm Tue 15 Jan 13

CourtOffside says...

JDH wrote:
funny how the chief executive at HMV was also at Jessops and they both go pop within a week of each other. Still i am sure he will be ok. When ever i have been in HMV they have always been busy, Saturday before xmas the Bournemouth store was packed solid, and their prices never seemed more than the supermarkets and a better choice, Trouble is people now are so blinkered towards the Tescos etc of this world and the dreaded internet. that the real high street stores will struggle to keep going.
Dreaded? Get off it then.
[quote][p][bold]JDH[/bold] wrote: funny how the chief executive at HMV was also at Jessops and they both go pop within a week of each other. Still i am sure he will be ok. When ever i have been in HMV they have always been busy, Saturday before xmas the Bournemouth store was packed solid, and their prices never seemed more than the supermarkets and a better choice, Trouble is people now are so blinkered towards the Tescos etc of this world and the dreaded internet. that the real high street stores will struggle to keep going.[/p][/quote]Dreaded? Get off it then. CourtOffside
  • Score: 0

3:18pm Tue 15 Jan 13

justsayithowitis says...

Hunter1234 wrote:
High street is getting worse in 1 week we lost jessops no hmv who's next halfords
W H Smith I would think. Don't know how they are still going. So expensive
[quote][p][bold]Hunter1234[/bold] wrote: High street is getting worse in 1 week we lost jessops no hmv who's next halfords[/p][/quote]W H Smith I would think. Don't know how they are still going. So expensive justsayithowitis
  • Score: 0

3:20pm Tue 15 Jan 13

CourtOffside says...

EdBmth wrote:
lemonhead wrote:
i do hope they can do something,as it willbe awful for the staff if they end up without a job this soon after christmas,lets hope someone can help,or soon we will have no shops in the high streets anymore.
Firstly I hope that a buyer can be found and that the staff are not left unemployed in a few months.

As for "lets hope someone can help,or soon we will have no shops in the high streets anymore. "

That someone is you. By thinking about where you buy your stuff. Do you buy it from tax avoiding overseas companies, who contribute little to the UK econom. Or do you buy it in the high street, from a business providing employment and keeping thje High Street alive. This Christmas I bought all but one of my Xmas presents on the high street and yes it was a litte more hassle, but didn't cost that much more

We are the people responsible for the demise of HMV, Jessops etc.
Imagine a shop.. where you can browse in comfort.. sat down.. with a drink of your choice in hand.

There are no other shoppers there to jostle and crowd you. No screaming children. No surly teenagers. Peace.

There are no interfering shop assistants "greeting" you or bothering you, or trying to sell you anything.

Any music in the shop is what you choose.

You don't have to use up any of the extortionate petrol in your car to get their. You don't have to pay to park, or carry your shopping to your car.. and you certainly don't need to get on any of this country's terrible public transport.

Why, for the love of Pete would I shop anywhere else?

Unless shops can give me a compelling reason to endure the living hell that is the high street - what reason is there for me to visit them?

We don't owe retailers a living. If they can't survive in the modern economy then it's better for everyone if they get out of the way. Modernise or die.
[quote][p][bold]EdBmth[/bold] wrote: [quote][p][bold]lemonhead[/bold] wrote: i do hope they can do something,as it willbe awful for the staff if they end up without a job this soon after christmas,lets hope someone can help,or soon we will have no shops in the high streets anymore.[/p][/quote]Firstly I hope that a buyer can be found and that the staff are not left unemployed in a few months. As for "lets hope someone can help,or soon we will have no shops in the high streets anymore. " That someone is you. By thinking about where you buy your stuff. Do you buy it from tax avoiding overseas companies, who contribute little to the UK econom. Or do you buy it in the high street, from a business providing employment and keeping thje High Street alive. This Christmas I bought all but one of my Xmas presents on the high street and yes it was a litte more hassle, but didn't cost that much more We are the people responsible for the demise of HMV, Jessops etc.[/p][/quote]Imagine a shop.. where you can browse in comfort.. sat down.. with a drink of your choice in hand. There are no other shoppers there to jostle and crowd you. No screaming children. No surly teenagers. Peace. There are no interfering shop assistants "greeting" you or bothering you, or trying to sell you anything. Any music in the shop is what you choose. You don't have to use up any of the extortionate petrol in your car to get their. You don't have to pay to park, or carry your shopping to your car.. and you certainly don't need to get on any of this country's terrible public transport. Why, for the love of Pete would I shop anywhere else? Unless shops can give me a compelling reason to endure the living hell that is the high street - what reason is there for me to visit them? We don't owe retailers a living. If they can't survive in the modern economy then it's better for everyone if they get out of the way. Modernise or die. CourtOffside
  • Score: 0

4:46pm Tue 15 Jan 13

EGHH says...

As a business consult said on Radio 4 Today this morning, HMV missed the boat when it came to on-line ordering. If they had been more aware they could have stolen Amazon's crown and become the big player in on-line music and video retailing. as it was they were too late and this is the result.
As a business consult said on Radio 4 Today this morning, HMV missed the boat when it came to on-line ordering. If they had been more aware they could have stolen Amazon's crown and become the big player in on-line music and video retailing. as it was they were too late and this is the result. EGHH
  • Score: 0

5:49pm Tue 15 Jan 13

skydriver says...

Although they have our money, we can't get it back, by that I mean we have a gift voucher but were unable to spend due to the situation, I guess we, the public will be paying the PCW fee for this administration process, I'm not a lawyer, but I doubt if this practice is legal, in short they harbour money and we want the goods, anyone have any ideas?
Although they have our money, we can't get it back, by that I mean we have a gift voucher but were unable to spend due to the situation, I guess we, the public will be paying the PCW fee for this administration process, I'm not a lawyer, but I doubt if this practice is legal, in short they harbour money and we want the goods, anyone have any ideas? skydriver
  • Score: 0

7:12pm Tue 15 Jan 13

rba says...

extortionate rents and rates, taxes and greedy profits etc is a contributing factor for places like this going bust. people have more choices these days and the internet/technology and the future is partly responsible for people changing their buying habits and therefore consumers look around for better deals.
I haven’t shopped in hmv for years as they have nothing to offer me better than i can get on the internet and that includes service and product selection. I am sorry to hear that people will lose their jobs and the debts that hmv have built up where other businesses will lose out. maybe they will get an overseas investor to buy the company for a pound run it for another year create more debt but the investor pockets millions blabla. and no I wouldn’t buy an echo newspaper but I would pay a subscription to read the news online!
extortionate rents and rates, taxes and greedy profits etc is a contributing factor for places like this going bust. people have more choices these days and the internet/technology and the future is partly responsible for people changing their buying habits and therefore consumers look around for better deals. I haven’t shopped in hmv for years as they have nothing to offer me better than i can get on the internet and that includes service and product selection. I am sorry to hear that people will lose their jobs and the debts that hmv have built up where other businesses will lose out. maybe they will get an overseas investor to buy the company for a pound run it for another year create more debt but the investor pockets millions blabla. and no I wouldn’t buy an echo newspaper but I would pay a subscription to read the news online! rba
  • Score: 0

7:52pm Tue 15 Jan 13

JDH says...

When i said "dreaded internet" i was trying to indicate the feelings of a traditional retailer when he hears the words "i can get this cheaper on line". We can all shop where and how we want, it is still a free country (just!), and as others have said, no shop has a right to our business least of all the big chains like HMV. However when most of the high street stores are gone and "on line " shopping is the norm what is there to stop these big offshore faceless internet retailers pushing up the price, and reducing choice and so controling what we buy and eat etc. There would be little to stop them doing deals with the internet providers to stop the little shops trading on line and so we would have less choice than we have now. Add to this the loss in business rates to the local council. Even if the empty sites were reused for something else (ie housing), the income could be less than generated by shops, so the shortfall would be made up by guess who, the ordinary householder. By all means shop on line, but you never miss something until it is gone,
When i said "dreaded internet" i was trying to indicate the feelings of a traditional retailer when he hears the words "i can get this cheaper on line". We can all shop where and how we want, it is still a free country (just!), and as others have said, no shop has a right to our business least of all the big chains like HMV. However when most of the high street stores are gone and "on line " shopping is the norm what is there to stop these big offshore faceless internet retailers pushing up the price, and reducing choice and so controling what we buy and eat etc. There would be little to stop them doing deals with the internet providers to stop the little shops trading on line and so we would have less choice than we have now. Add to this the loss in business rates to the local council. Even if the empty sites were reused for something else (ie housing), the income could be less than generated by shops, so the shortfall would be made up by guess who, the ordinary householder. By all means shop on line, but you never miss something until it is gone, JDH
  • Score: 0

8:01pm Tue 15 Jan 13

rotcoddam says...

Given the in many peoples opinion theft of failure to honour gift vouchers. It makes you wonder just how half witted folks will have to be to buy gift vouchers from now on. Personally I could never understand the sense of buying them, why not just give cash, the receipient can then buy what they waant from where they wnt and retailrs can,t steal the money
Given the in many peoples opinion theft of failure to honour gift vouchers. It makes you wonder just how half witted folks will have to be to buy gift vouchers from now on. Personally I could never understand the sense of buying them, why not just give cash, the receipient can then buy what they waant from where they wnt and retailrs can,t steal the money rotcoddam
  • Score: 0

8:38pm Tue 15 Jan 13

Bournefre says...

When I was a teenager I used to buy CDs and records from HMV nearly every week; they had a good selection of vinyl categorised by genre and turntables to listen to them on, the top 40, new releases and back catalogue CD singles. Then they got rid of the turntables. Then they stopped selling records.
The last time I went in there to buy a CD single I walked around the shop (Castlepoint) 3 times before asking at the till if they still sold CD singles. They only had the top 10 hidden away in a corner, so I left without buying anything.
As far as I'm concerned HMV closed down years ago.
When I was a teenager I used to buy CDs and records from HMV nearly every week; they had a good selection of vinyl categorised by genre and turntables to listen to them on, the top 40, new releases and back catalogue CD singles. Then they got rid of the turntables. Then they stopped selling records. The last time I went in there to buy a CD single I walked around the shop (Castlepoint) 3 times before asking at the till if they still sold CD singles. They only had the top 10 hidden away in a corner, so I left without buying anything. As far as I'm concerned HMV closed down years ago. Bournefre
  • Score: 0

10:47am Wed 16 Jan 13

rusty james says...

Thing about HMV is, if you're after chart fodder you can get it cheaper in a supermarket, and if you're after something a bit more obscure they often don't have it, so online you go.
What's great about HMV is you can hide in there while the missus is off looking at shoes and frocks. A good percentage of my music collection has come about this way, y'know, mooching about and browsing, flicking through the racks and taking a chance. This is what'll be lost, and to a music lover like myself it's a tragedy. I was in the Castlepoint branch yesterday and it was awfully sad, thinking I might not be able to just browse real physical product anymore. Picked up a few classic albums and wished the assistant the very best of luck.
Thing about HMV is, if you're after chart fodder you can get it cheaper in a supermarket, and if you're after something a bit more obscure they often don't have it, so online you go. What's great about HMV is you can hide in there while the missus is off looking at shoes and frocks. A good percentage of my music collection has come about this way, y'know, mooching about and browsing, flicking through the racks and taking a chance. This is what'll be lost, and to a music lover like myself it's a tragedy. I was in the Castlepoint branch yesterday and it was awfully sad, thinking I might not be able to just browse real physical product anymore. Picked up a few classic albums and wished the assistant the very best of luck. rusty james
  • Score: 0

11:19am Wed 16 Jan 13

CourtOffside says...

JDH wrote:
When i said "dreaded internet" i was trying to indicate the feelings of a traditional retailer when he hears the words "i can get this cheaper on line". We can all shop where and how we want, it is still a free country (just!), and as others have said, no shop has a right to our business least of all the big chains like HMV. However when most of the high street stores are gone and "on line " shopping is the norm what is there to stop these big offshore faceless internet retailers pushing up the price, and reducing choice and so controling what we buy and eat etc. There would be little to stop them doing deals with the internet providers to stop the little shops trading on line and so we would have less choice than we have now. Add to this the loss in business rates to the local council. Even if the empty sites were reused for something else (ie housing), the income could be less than generated by shops, so the shortfall would be made up by guess who, the ordinary householder. By all means shop on line, but you never miss something until it is gone,
What is there to stop online retailers jacking up the price?

Competition. The internet is a much bigger market place. It is easy to compare prices across retailers and shop around with a few clicks. There are very low barriers to entry to the online marketplace as well making it much easier for new operators to join the market and undercut any retailers who are not offering competitive prices.

"There would be little to stop them doing deals with the internet providers to stop the little shops trading on line"

There are a couple of points to make about this statement:

Firstly - it wouldn't be legal at the moment.

Secondly - that the current government wants to change that and allow ISPs to charge service providers for providing access to their sites. ISPs like Virgin are lobbying very hard for this. If you can see this kind of problem which could very well occur - and feel it would be a problematic issue in the future than I would implore you to take an interest in the fight to preserve the "open internet". It is one of the biggest issues confronting our society and yet the vast majority of people know nothing about it.

As for business rates.. they get paid by ordinary householders indirectly anyway by shopping with them... but it would be interesting to see the true economic picture if you replaced high street shops with dwellings. I'm not so sure that it would end up so bad. There are costs associated that would disappear as well after all.
[quote][p][bold]JDH[/bold] wrote: When i said "dreaded internet" i was trying to indicate the feelings of a traditional retailer when he hears the words "i can get this cheaper on line". We can all shop where and how we want, it is still a free country (just!), and as others have said, no shop has a right to our business least of all the big chains like HMV. However when most of the high street stores are gone and "on line " shopping is the norm what is there to stop these big offshore faceless internet retailers pushing up the price, and reducing choice and so controling what we buy and eat etc. There would be little to stop them doing deals with the internet providers to stop the little shops trading on line and so we would have less choice than we have now. Add to this the loss in business rates to the local council. Even if the empty sites were reused for something else (ie housing), the income could be less than generated by shops, so the shortfall would be made up by guess who, the ordinary householder. By all means shop on line, but you never miss something until it is gone,[/p][/quote]What is there to stop online retailers jacking up the price? Competition. The internet is a much bigger market place. It is easy to compare prices across retailers and shop around with a few clicks. There are very low barriers to entry to the online marketplace as well making it much easier for new operators to join the market and undercut any retailers who are not offering competitive prices. "There would be little to stop them doing deals with the internet providers to stop the little shops trading on line" There are a couple of points to make about this statement: Firstly - it wouldn't be legal at the moment. Secondly - that the current government wants to change that and allow ISPs to charge service providers for providing access to their sites. ISPs like Virgin are lobbying very hard for this. If you can see this kind of problem which could very well occur - and feel it would be a problematic issue in the future than I would implore you to take an interest in the fight to preserve the "open internet". It is one of the biggest issues confronting our society and yet the vast majority of people know nothing about it. As for business rates.. they get paid by ordinary householders indirectly anyway by shopping with them... but it would be interesting to see the true economic picture if you replaced high street shops with dwellings. I'm not so sure that it would end up so bad. There are costs associated that would disappear as well after all. CourtOffside
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