Commenting on the news that Sunrise Records is to acquire 100 HMV stores out of administration, Patrick O’Brien, UK Retail Research Director at GlobalData, offers his view:

“That someone has taken on so many stores is a welcome surprise, but it is difficult to see how the market for physical music and DVDs can sustain a 100-store chain in the long term. GlobalData estimates that the market for physical music and video will continue to decline, from £1bn in 2018 to just £645m by 2023. Sunrise Records will have to do more than merely increase market share of the music & video market – which is itself difficult given the continued rapid growth of Amazon Prime. It will need to get much greater support from suppliers, landlords, and widen its proposition in other categories.”