HELLO,

MY HEART SAYS BUY, MY HEAD SAYS NO!

ANY THOUGHTS?

Ok ,I like the brands and the history.

Mr Waterstone wants his bookshops back and now the whole lot is worth less than 470 million it's do-able, especially if he gets rid of the ELC.

But, can they compete with supermarkets?

Help me!

The word "risky" springs to mind.

FWIW, Borders is apparently considering getting rid of its UK operations, which comprise 72 stores, selling (you guessed it!) books and recorded music. Speculation has been raised (at least, according to a recent issue of The Independent) that HMV/Waterstones may bid for Borders stores, but this was counterbalanced by the view that HMV may have enough trouble already with trying to right its own ship.

That's just the gossip I have heard, and I have done no research whatsoever, but at the end of the day you might find that there are better investments on the High Street.

It's your money, so please do your own research and make your mind up accordingly.

dont go there, customers get hmv gear cheaper at tesco etc...

Starting to pick up ahead of Christmas season.

HMV hit by poor Waterstone's sales.


The boss of Waterstone's has left with immediate effect after the book chain suffered a plunge in sales over the Christmas period.

Parent company HMV reported this morning that like-for-like sales at Waterstone's tumbled by 8.5% in the five weeks to 2 January. The poor results took the shine off a record performance at HMV's entertainment stores. Waterstone's managing director, Gerry Johnson, has paid the price for the poor sales. He left with immediate effect today, to be replaced by HMV group development director Dominic Myers.

Chief executive Simon Fox described Waterstone's recent performance as "unsatisfactory", saying that delays in setting up a distribution hub took focus away from what customers wanted in the chain's high street stores.

"Gerry Johnson and I agreed it was time for a change," he added.

Fox insisted Waterstone's was an "excellent business and brand" and that there was a place on the high street for a specialist bookseller, despite pressures from online retailers such as Amazon, the rise of downloadable ebooks and cut-price bestsellers at supermarkets.

The priorities for the new chief would be "improving the customer proposition", tailoring stores to their local market, managing promotions more effectively, accelerating online and digital book growth and getting further cost synergies from Waterstone's position as part of a larger group, Fox said.

Shares in HMV tumbled by 8% today, losing 7.45p to 84.5p.

It is understood that Johnson will receive his contractual entitlement to a year's salary, which was 312,000 in the last financial year. This is paid in quarterly instalments which would end if Johnson found a new job within the year.

Today's HMV results came on a busy morning for the City, in which electricals chain DSG, owner of PC World, and Primark-owner Associated British Foods emerged as Christmas winners.

HMV's own stores also enjoyed a strong Christmas, with like-for-like sales up by 2.2% in the five-week period. It sold more than 27m CDs, DVDs and games in the run-up to Christmas, with sales of technology products 50% higher.

Fox said this was the chain's third consecutive record-breaking Christmas. The stores it acquired from Zavvi, which collapsed a year ago, performed particularly well. But the group's overall like-for-like sales fell by 1.2% because of the slump at Waterstone's. Freddie George, analyst at Seymour Pierce, cut his profit forecast from 78m to 76m because of the performance at Waterstone's.

The bookseller's sales have been falling steadily for some time, partly because of the rise of web retailers such as Amazon. The collapse of rival Borders in December was also a mixed blessing as Borders slashed prices heavily in an effort to clear its stock.

Johnson defended Waterstone's last November, following a Guardian feature which suggested the chain had helped to "kill" bookselling in the UK. Johnson insisted that Waterstone's was still committed to literature and promoting new authors, despite the rapid changes in the industry.

Loks like HMV may end up like Woolworths a victim of supermarkets and the internet.

or alternatively a winner with the demise of woolworth and now Borders gone too - its two biggest competitors off the scene it has "last man standing" status, the only big high street dvd/cd/gaming/bookselling presence !

It also has a rapidly expanding online music operation with its recent acquisitions, and is also diversifying into live music/ sales and cinema. Is CD/DVD/games going to disappear completely from the high street - I very much doubt it - HMV could clean up with most of the main competition out of the way.

crink are they going to beat the supermarkets on the high street, no their days are numbered, have a look at their last balance sheet and you can see the similarities with the deceased woolies.

Anyone see the article in todays London ES about HMV falling into the hands of Private Equity?

City abuzz with talk of HMV searching for a new master

- COULD HMV fall into the hands of private equity?
That was one of the yarns doing the rounds in the Square Mile today, after retail expert Nick Bubb of Arden Partners said that the chains shares look so cheap that it could attract a venture capital suitor.
The entertainment retailer, which also owns the Waterstones chain of bookshops, is now the last man standing on the High Street after rivals Zavvi and Woolworths collapsed. But investors fears about the threat from the internet and s u p e r m a rke t s has c au s e d the shares to struggle. Management are very focused on realising shareholder value and ultimately we expect the market to give the group more of the benefit of the doubt, Bubb said. If not, then HMV will be very vulnerable to a private equity bid. Either way, we target a bounce back to 95p.
Arden has a buy rating on the shares, which ticked up 0.7p to 69.8p.

HMV has rattled market nerves with disappointing fourth quarter sales. UK & Ireland like-for-like sales tumble 13.2% in fourth quarter.

It is blaming the winter weather and tough comparatives but sceptics see deeper problems, with one analyst labelling the shares a "value trap".

The home of the eponymous film and music stores said its HMV UK & Ireland like-for-like sales tumbled 13.2% in the 16 weeks to April 24.

That "reflects very strong comparatives in this period in the previous two years, reduced levels of campaign activity this year combined with the impact of severe weather at the beginning of the period," it claimed.

In a trading statement, HMV says that its group like-for-like sales, which includes the embattled Waterstone's bookselling chain, fell 10.2%. Total sales, which includes a recently acquired chain of live venues, were down 5.8%.

The sales update has overshadowed HMV's prediction that underlying pre-tax profits will be in line with market expectations of 74.5m. The shares are the steepest fallers on the FTSE 250, down 5.1p, or 6.5%, at 74p.

Turning to Waterstone's, which had a torrid Christmas ending in the departure of managing director Gerry Johnson, HMV Group reported an "improved trend", with like-for-like sales down 4.8%.

But some analysts are not so optimistic about any improvements as HMV continues to battle cut-throat competition from supermarkets and online stores as well as changing consumer habits.

Kate Calvert, analyst at Shore Capital, is quoted as saying on Reuters:

"Like-for-like sales decline of 13.2% for the 16 weeks to April 24 is not a pretty number and a massive change on the 1.4% growth reported for the 10 weeks to January 2."

"We view the shares as a value trap as we do not expect its recent diversifications into live music and ticketing to offset the decline of its core business over the medium term."

HMV is heading on a long term downward trajectory. Keep on selling at 58p now.

I can't believe these are paying a 7.4p dividend.

skin remember woolies?

I'm too young :-)

HMV looks interesting with a double bottom.

Wonder if Euroclear have up to date shorting figs.

Yep here they are.................

Well from Euorclear end of June figures for HMV.........

GB0031575722 HMV GROUP ORD 1P 100675368.95 417274471.86 24.12

24.12% being shorted.

This could be one hell of a bull mover of a bottom when shorters close out.

Bugga it, in for a penny in for a pound, Im going long.

Well would you credit it, Nearly a full deck of Broker Buys for this stock.

Forecast P/E of just over 4 for 2011.

looks like a real bargain to me.

Look at that Divi Yield aswell.

HMV Group PLC

FORECASTS 2011 2012

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Oriel Securities
05-07-10 UREV 80.80 13.70 7.40 83.60 14.20 7.40

Charles Stanley Securities
05-07-10 BUY 78.00 13.31 7.40 81.00 13.82 7.40

Shore Capital
02-07-10 SELL 81.00 13.80 7.40 76.00 13.00 7.40

KBC Peel Hunt Ltd
02-07-10 BUY 75.98 13.01 7.40 81.62 13.98 7.40

Arden Partners
02-07-10 BUY 77.98 13.00 7.40 84.03 14.10 7.40

Singer Capital Markets Ltd
01-07-10 BUY 76.50 12.70 7.40 82.00 13.80 7.40

Seymour Pierce
25-06-10 BUY 80.00 13.30 7.40

Investec Securities
24-06-10 BUY 80.00 13.70 7.40 84.04 14.38 7.40

The Royal Bank of Scotland NV [R]
04-05-10 HOLD 70.89 12.01 7.40

Numis Securities Ltd
29-04-10 HOLD 80.70 13.20 7.40

Nomura Research Institute
19-02-10 BUY

2011 2012
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 78.79 13.15 7.40 82.65 13.98 7.40
1 Month Change -0.61 -0.21 0.00 2.68 0.59 0.00
3 Month Change -2.04 -0.40 0.00 1.65 0.77 0.00


GROWTH
2010 (A) 2011 (E) 2012 (E)

Norm. EPS 11.31% 4.05% 6.32%
DPS 0.00% 0.00% 0.00%

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA m 129.73m 136.68m

EBIT m m m

Dividend Yield 13.58% 13.58% 13.58%

Dividend Cover 1.71x 1.78x 1.89x

PER 4.31x 4.14x 3.90x

PEG 0.38f 1.02f 0.62f

Net Asset Value PS p p p

Simon Fox, HMV's youthful chief executive, probably has enough on his plate trying to convince a sceptical City that the future for the entertainment chain is bright. But Nick Bubb, retail guru at Arden Partners, warns that the entertainment chain may soon attract an activist investor.

We are disappointed that HMV does not appear to have a Plan B' to boost its ailing share price [such as] a share buyback programme or a corporate restructuring, said Bubb. If they are not planning that then it may not be too long before an activist investors appears on their share register.

However, Bubb is still a buyer of the shares, calling the company's rating derisory, although he has trimmed his target price from 115p to 90p.
City gossips have HMV as a prime candidate for a private equity takeover. Its shares added p to 58p.

http://www.thisislondon.co.uk/standard-business/article-23853768-more-talk-of-a-middle-east-bid-puts-sainsburys-at-top-of-the-ftse-list.do

Isn't this sp the Market's split between
1)believing such a good brand will survive and become income-generating
and
2) the belief that no-one will visit their shops to buy overpriced CD/DVD -or whatever, when they can download and pay little, for just the few tracks (sorry, tunes) they really like - perhaps with a sample of "similar" mixes thrown in as a Bonus.

Contrast 2) with the offering I understand comes from within HMV shops - fixed Albums with nearly all the tracks sounding the same (being the same artists) with some actingas "fillers" - if not in my mind - in the mind of others....
Pop music isn't like a Film, that has a "journey" from the start thro' to the finale.
Rather pop music is . . . . . . more like a "finger buffet" where you pick n' mix.

Woah!......pity Woolworths didn't think of that! - they were so near music and already had a Pick'n'Mix name.
Perhaps HMV should team up with Clinton and Moonpig.....that would be a Combination....you heard it here first!

HMV chart starting to look interesting.

Is this the start of an upleg channel. The lower indicators are just about turning positive.

Got some backing from the fundies camp aswell, whats that retail analyst called Nick Bubb?... seem to remember him a week or two back with a 80p plus target I think. dyor.

HMV - Two big recommendations in the Financial Times this weekend.

http://www.ft.com/cms/s/2/fb84c9d8-a182-11df-9656-00144feabdc0.html


and

http://www.ft.com/cms/s/2/e1fee1f2-a181-11df-9656-00144feabdc0.html

John Lee's comment in the FT says it all:

"However, in my 50 years of investing, I have rarely come across a more extraordinary valuation of a significant PLC than that currently placed on HMV."

HMV has been a good short 4 me.

DEAD DOG OR NOT?

so far has been a DOG, so stay away is the best way

Inclined to agree, if it looks like-, if it smells like-, - - - - then it probably is. (famous quotqtion - dunno?)
Robert Stanell doesn't think so, for over the past 2-years he's invested 50k + in smaller Buys with an average drop must be over 50% - can't imagine his Misses, is too pleased when he raises a glass over the Xmas festivities.

Now, what should HMV do? (to regain their business position on the high street.). Don't say more records, that's about a dead technology, like selling needles (for audio!) was in the 80's when the CD came in.
Clearly they need a new business strand to keep going, for the Debt is now greater than their Mkt Cap (DYOR), or v.close.

Fell 9% today; does the Market think Xmas sales may be affected by the Snow?. 28p
I don't hold, yet - I usually buy-in just before the Balloon goes up, Ahem.

I dont like the look of it but should it fall to 12p/14p I may decide to buy.

With the use of Ipods, Iphones etc, I don't envisage ever buying a CD again, even DVDs are available online and storage on a memory stick takes up a whole lot less room than a rack of plastic. I don't know if HMV have any sharing agreements with Itunes etc (I think not) but it's hard to see where their future income is coming from. Having siad that I was in a HMV store this afternoon and there was quite a long queue for the checkout (mostly DVDs I think).

whatever happened to "Woolies", history has a habit of repeating itself.

Surely doomed. Bad numbers were indicated prior to the snow. The snow has killed off their last chance this year to make any sales progress. Xmas trading figures will be out in mid-Jan (14 Jan last time) and they sure ain't going to be good - we know that from other retailers on the same High Streets (They share footfall. If the crowds aren't there for some shops they probably aren't there for adjacent ones). I remain short.

DEAD DOG OR NOT?

It was lately acting like a dog, but today is bouncing well up from 28p to 31p, time to look closer, for a short term bounce
All the Indicators are on the rise from oversold

The HMV sale is now on!
27p now.

Sales slipping at HMV

Music and books retailer HMV Group said today that for the five-week Christmas period total like-for-like sales were down 12.9%, with Waterstones down 0.4%.

As reported in the group's Interim Results on 9th December 2010, the beginning of the peak trading period was significantly undermined by severe weather in the UK, which continued through until Christmas.

In addition, in HMV UK & Ireland, notwithstanding strong sales of certain key products, underlying entertainment markets have remained weak in the financial year to date. Consequently, the anticipated improvement to first half like for like sales did not materialise.

HMV said at bookseller Waterstone's improved like for like sales reflects the success of the turnaround actions implemented during 2010 and improved stock availabilities from the book hub.

HMV said the challenging entertainment markets, combined with the severe weather over our peak trading period have had a negative impact on the trading year to date.

The group is taking aggressive action to tightly manage its cost base and expects to exit around 60 stores across our UK businesses over the next 12 months as it seek to re-shape its store portfolio. A further 10m per annum of cost savings has been identified across the group.

HMV stated that the combination of more challenging trading conditions, off-set to an extent by a significant step-up in cost savings, leads it to expect, with four months of the year to go, that profit before tax and exceptional items for the full financial year will be around the lower end of the current range of market expectations.

Given the difficult trading conditions over Christmas and the likely outturn for the year, the Board now expects that compliance with the April covenant test under the Group's bank facility will be tight and is taking further mitigating actions during the next four months to address this.

CEO, Simon Fox, said: "Whilst HMV has had a challenging year to date, it remains a profitable and cash-generative business and a powerful entertainment brand. The pace of change in the markets in which we operate underlines the urgency with which we must continue to transform this business.

"Progress at Waterstone's this year has been pleasing, and we remain on track to meet our business and financial objectives for the end of the first year of our turnaround programme." Story provided by StockMarketWire.com

Get out now

and buy back at 12/14p.

The Sales fall Xmas2010 is not much IMHO, - there was snow and many folks ordering on-line - or elsewhere for Flat-TV's, game consols, etc. The sp "anticipated it" the Ann. and sp drop is MM's making sure they don't get lumbered with too much stock....
Music (& Books) have largely become unexciting -

Is this a bit like Woolworths..? With the difference being that HMV has external reasons to be fearful their business is tending lower year-on-year, whereas Woolworth was losing business because the Directors didn't care (and had no business nous between them). Perhaps they both sare the same style Directors...anyone...?
I fear HMV brand (dog) is soon their only asset, but no-one plays records anymore.

Mitzy is spot-on . . .. but with a large dose of "Wait and see" . . . IMHO.

hmmmm - further fall tomorrow - or slight bounce?? they still turn a profit but not keen on the bank facility situation in april - hmv need to modernise quick or be consigned to history over a period of time imo

good streamlining steps though which may suggest a little bounce tomorrow perhaps? we will see - nearly bought today but left it - glad i didnt buy

surely a dead duck but insufficient to go for to short

Credit insurers have added to the woes of HMV, the struggling entertainment and book retailer, by scaling back cover for some of its suppliers. Two music and entertainment companies have said they can no longer get credit insurance to supply products to the retailer, which issued a profits warning this month after dreadful Christmas trading, the Independent reports.

Not good.

oh dear - they always say that when credit insurance falters - this is bad despite the rns - glad i am not in here yet - been watching though - needs to cheapen much more - probably wont bother now - i just cant think of much hmv has going for it apart from the dog!!! gla

Sky news says they could do a Woolworths.

they might not survive 2011 unquote.

Sky News article

mitzy - yep been thinking the same - would not surprise me if this did a woolies

jrm - i wouldnt advise anyone in case i messed up - but personally at the moment its a no for me - last i knew the banking situation is dire and needs to be sorted by april - i dont think that has changed - if it has pls update me

hmv imo kind of got stuck in time and didnt innovate enough - hence they are where they are - if i was an employee i would 1/ be worried 2/ look for alternative employment - poor souls - saw it at woolies, connaught and elsewhere

gibby watching the Sky report this week they really put the boot in saying in effect they are worthless I have never seen such a biased report.

The reporter said he believed they would not be around in 2012.

whoops! i know - this is interesting....

HMV May Need to Sell Waterstone's or Offer Shares to Buy Time

By David Altaner - Jan 21, 2011 11:12 AM GMT

inShare

MorePrint Email

HMV Group Plc, the U.K.s biggest music and DVD retailer, may need to sell its Waterstones bookstore chain, suspend its dividend or offer shares as time runs short to develop a business model for the digital age.

The retailer probably needs five years to shift its business away from CDs and DVDs and become a web- and mobile phone-based destination, said Mark Mulligan, an analyst at Forrester Research. With a banking covenant test due in April and suppliers having credit insurance reduced, it may need to buy time to implement such a strategy.

Selling the 311-store Waterstones chain might fetch as much as 75 million pounds ($119 million), according to Nick Bubb at Arden Partners. Eliminating the dividend would save about 31 million pounds for the Maidenhead, England-based retailer, which is diversifying into live music venues to boost sales as competition increases from supermarkets and online retailers.

It would let them clear the decks to play another day, said Bubb, who rates the shares neutral. The danger is, they dont sell Waterstones, and die a death of 1,000 cuts.

HMVs shares have fallen every year since 2005, plunging 66 percent in 2010, and trade at a price-to-earnings ratio of less than three. The stock fell as much as 3.25 pence, or 14 percent, to 20.25 pence in London trading today, the lowest since a 2002 initial public offering. HMVs market value of 91 million pounds is a fraction of the 845 million pounds that Permira Advisers Ltd. offered for the company in 2006.

HMV said this month that profit would be at the lower end of analyst estimates and the covenant test would be tight. The retailer also said it will close 60 U.K. outlets in 2011 after reporting a 14 percent decline in same-store sales at U.K. and Irish HMV stores in the 10 weeks ended Jan. 1.

gibby I may buy around 12p but realistically they are looking doomed.

they are in serious trouble - so many things might happen - but i would say they should continue in reverse at least to 15 - 17p minimum thanks to the likely breach of bankin covenants - i think the analyst estimate of 'tight' for the covnant test is generous imo - personally i have not been into an hmv for years - how many others - hmv will imo probably be sold, or exist as an almost completely different entity once they have torn up their old road map which was clearly useless - hmv shares fallen every year since 2005! even if the weather was better around xmas i honestly dont think it would have made much difference to hmv's troubles

12p - yep - if you do keep a very close eye on them more than usual - once waterstones flogged if they go that route is a big hole in their asset sheet - still following this one but should continue in reverse for now - with usual day trading etc glad i kept clear here again today - but never say never! he who dares & all that - have a good weekend

i can see absolutely no reason to buy hmv, for their problems are surely exacerbated by the continuing poor performanc of the high street in general ..... is there enough "meat" to make hmv worth shorting? ..... possibly though it's not quite so clear cut as it was with CNT

Have to agree, with intense competition and austerity measures kicking in it is difficult to see a way out for HMV. One to keep clear of imho.

Observer.

HMV is chart-topper for short sellers Troubled entertainment retailer is first choice for investors betting on falling share prices

bookseller Sussex Stationers gone into administration - another competitor to Waterstones out of the way

the bookshop chain also one of the last ones left on the high street

I hardly think the demise of a small player is something to celebrate. Rather they are a symptom of the problem that managements face, esp. if they ignore the obvious.....Woolworth being the most recent example, having already taken jobs and shareholder funds to the abys.

It's possible HMV can be rescued, or that they have done this already and the Market hasn't cottoned-on. I'm swaying in the breeze on this, not wanting to add to my losses, Marconi, Woolworths, ROK and so on.

It seems to be a monstrous dereliction of Duty that our Regulators cannot undertake a review of the events leading to large failures, perhaps in the hope they might be avoided in the future. After they are never short when it comes to lifting money from the Public to run their empires.

I fear HMV will join that list, given a little more time.

what on earth have the regulators got to do with the demise of a retailer, unless there has been some criminal wrongdoing?

Nothing at all. Cannot blame regulators for a failure of business strategy. The share price has been slipping downhill every year since 2005 - plenty of time in which to do something about it. Any investor who has chosen to hang on instead of selling at some set exit level can blame nobody but themselves.

Ordinary business failure is not for Regulators, I agree.#However, these are FTSE companies that support the pensions of investors and shareholders have only the RNS and what the Co tells us. Also, consider the employees, they spend money in the economy.
Yet it seems in the case of (Marconi, Woolworths, ROK and several more), the company suddenly collapses having given "OK" signals.

Call it self Delusion, or hope that "something will turn up" - but that is hardly the basis for continuing business as usual, in what might be considered a ship that's holed below the water-line......continuing to take-on passengers might be regarded as dishonest, if not "criminal"?

If as has been suggested that nothing has been done (causing the sp decline), then the Market is not creating any desire by the Execs to act. Yet they continue to tell the Market things are about the recover (how I read the An.Report), so they continue to offer platitudes, rather than harsh root/branch action.

When there is a train/AIr-crash there is an investigation to establish what might be learnt. All I'm suggesting is that Regulators need to be stomping about the debris to understand what action might be effective "next-time" - otherwise they will continue to provide bundles of "Rules" that are unlikely to provide any comfort for investors - otherwise what's the whole purpose of Regulation?

((As an aside, are you happy with the existing Regulations that our Banks are enjoying?))

http://www.forexpros.com/news/stock-market-news/scenarios-what%27s-in-store-for-struggling-uk-retailer-hmv%20-193839

A bit of a squeeze.

HMV warns of potential covenant breach



http://www.growthcompany.co.uk/news/1605728/hmv-warns-of-potential-covenant-breach.thtml

Dire Staits comes to mind.

This is ever-dropping its pants.

So whats new..?

I'm not buying it even at 12p.

This looks bad,

ditto that - how low will hmv go one wonders?

Holding up well today.

Sinking due to recent radio coverage.

i have a friend who is connected here, and he tells me to expect some news in the next 2-3 weeks. i'm long, and so is he now, but not sure the market will respond that favourably(waterstones just isnt worth that much anymore)
i've only got 10k, so just a small punt to try and alleviate the boredom from this
lackadasical market....poor investment reasoning, but.......

Death throws.
Fire sale

HMV selling Waterstone's for 53m
StockMarketWire.com
HMV Group has conditionally agreed to sell the Waterstone's business to A&NN Capital Fund Management for a total cash consideration of 53m.

A&NN is controlled by a trust in which Alexander Mamut has an interest,

The disposal, which represents an important step towards strengthening the capital structure of the remaining HMV Group, is conditional upon shareholder approval.

The disposal is also conditional on the receipt of approval from the pension trustee, the Pensions Regulator and consent from HMV Group's lending banks including a renegotiation of the Group's lending facilities.

Completion of the disposal is expected to occur by the end of June.



The total cash consideration for the Disposal of 53 million on a cash-free, debt-free basis is subject to certain closing adjustments.

Shockingly bad deal for HMV but also 100% necessary.

Current trading is REALLY shocking as well

-16.6% growth in the last 16 weeks is absolutely aweful.

yep waterstone went for a pittence in reality - one of the last throws of the dice - dont really see where hmv can go from here unless that have a major strategy review & re-think / rebranding / relaunch et cetera

nothing major!! lol

long - try eternity
but gl anyone stuck here and sorry to anyone sat on a paper loss

Struggling with to much debt.Even after 50 odd million for the book store. A dead dog. The internet (play.com etc) did not help.
Perhaps they did not move with the times quick enough?

We also have the electronic book and supermarkets selling ever cheaper. Is Waterstones going to go the same way?

HMV : RIP