Waterstones and HMV shops to shut

By DAILY MAIL REPORTER
Updated: 03:25 EST, 6 January 2011

Dozens of high street music and book shops are to close as retailers blamed a disappointing festive sales performance on the coldest December for 100 years.

Closing: HMV is struggling to hit targets.

Entertainment retailer HMV, which also owns the Waterstones book chain, saw its shares plunge by 20% yesterday after it reported a yearly 14.1% drop in sales at its music stores.

Waterstones saw a 2.1% drop in sales, with even best-sellers such as Take That's album Progress and Jamie Oliver's 30 Minute Meals failing to stop the rot.

The group said the period had been 'significantly undermined by severe weather', but also blamed the 'weak' entertainment market.

Shares of the firm, which also faces increasing competition from internet retailers, closed at 26p yesterday. They were worth £1 last January.

Clothes retailer Next also reported bad news, saying the snow meant it 'lost' around £22m of full-price sales, with like-for-like sales dropping by 6.1%.

It repeated its warning that clothing prices will increase this year, blaming the VaT rise, rising cotton and oil prices and higher salaries in producer countries such as China.

But there seems to have been good snow as well as bad snow for retailers. John Lewis yesterday said it had enjoyed an 'outstanding' festive season with record-breaking sales.