Thorn-EMI 1995 Annual Report

HMV
customer-driven
performance
An almost 130 per cent year-on-year improvement in operating profit before operating
exc€ptional items to f14.0m marked another year of important progr€ss by HMV, with sales
up by 24.6 per cent to f503.2m and an average like-for-like sales increase of9.0 per cent.
Approximately 50 per cent of HMV's music store turnover was gen€rated by its operations
outside the UK, which accounted for 108 ofits total chain of201 stores. All markets
contributed to HMV's impressive performance.
HMV's organic growth continued, with a further net 22 new stores being added to the chain
during the year. Investment in new stores was made in all its major markets. HMVJapan
successfully extended its reach into the Osaka and Nagoya markets. In Canada, HMV has
continued the development ofthe British Columbia market, while strategically in-frlling in local
Drawing th€ (rowds - HMv"
new taPanere Jtorer.t
Shiniuku,Tokyo (top).nd
Nagoya.
markets with further good potential. HMV UK successfully completed major re-siting of stores in
several important centres.
HMV opened its fust store in Hong Kong during the year. It is encouraging that its
performance has been well ahead oforiginal expectations. In Australia, HMV expanded its
operation in New South Wales and is well placed for future inter-state growth.
HMV USA brought another four stores into operation: in Downtown Boston; Avon,
Connecticut; Georgetown, Vashington; and Atlanta, Georgia, bringing its total network to seven.
It was particularly pleasing that the US music industry voted HMV USA Retailer ofthe Year in its
category for the second year running.
The introduction ofthe highly effective, purpose designed 'Track' point-of-sale and stock
management IT system continued during the year. It is now present in all major markets.
Substantial progress was made in introducing a common worldwide finance system to increase
operating efficiency.
The year's results confirm the continuing success of HMV's imaginative approach to
attracting and satisfying the interest of music lovers, backed by investment in carefully chosen