HMV gains not just result of rivals' exit.

Retailer posts sales growth figures

HMV Group chief executive Simon Fox insists that even without Zavvi and Woolworths collapsing sales for the retailer's UK & Ireland chain would still be increasing.

Fox concedes the disappearance of two of its biggest rivals played an "important part" in helping HMV's UK & Ireland total sales grow by 11.7% in the 16 weeks to April 25 as it defied the economic gloom to outperform the market. The chain's like-for-like sales rose 4.3% in the period.

However he says that, had the two retailers not gone out of business, the chain's results would still be rising on a like-for-like basis. Fox adds, "It's quite hard to take the sugar out of the tea, though, and there's no doubt the disappearance of Zavvi and Woolworths, which was very sad, clearly had a positive lift on our performance."

Twenty-three of those Zavvi stores have now been taken over by HMV, a move that was given Office of Fair Trading approval last week.

"Zavvi's collapse was a third of the way into this period and Woolworths went around Christmas, which created a massive change in the landscape and we've been working hard to make sure we welcome those former customers into HMV and that the total market doesn't collapse as a result of fewer outlets," he says.

Zavvi and Woolworths combined were generally accepted to command around 20% of the music market, while the albums market this year to date is down by a more modest 7%.