HMV’s bold moves - a masterclass in smart strategy

If you’d asked a retail analyst in early 2019 whether HMV had a future, most would have shrugged and pointed to its recent collapse into administration. Its second in a decade. The prevailing wisdom was clear: streaming had killed physical media, the high street was dead, and nostalgia alone wouldn’t be enough to keep a bricks-and-mortar music chain alive.

Yet here we are in 2025, and HMV is not only still standing but thriving. Trading figures released a few days ago show revenues were up in 2024 for the third consecutive year, and in a move that would have seemed unthinkable, the brand reclaimed its iconic flagship store on Oxford Street late in 2023.

There are many turnaround stories out there, but HMV’s revival stands out because it wasn’t driven by a single silver bullet but by a blend of innovative thinking, a willingness to take calculated risks, and an unshakable belief in the power of community. Here’s what makes HMV’s approach worth a read.

1. Betting big on the physical format’s future

At the heart of HMV’s revival is a bold contrarian bet: that physical media isn’t dead. While most of the retail industry saw digital streaming as an existential threat, HMV saw an opportunity. It recognised that, for a passionate segment of music and film fans, physical ownership still mattered.

Vinyl’s resurgence has been well-documented, so HMV exploited this, positioning itself as the UK’s leading retailer of records. It leveraged the cultural cachet of vinyl collecting and tapped into a new generation of fans, those who grew up in the digital age but longed for tangible experiences. The numbers back this up: In 2023, UK vinyl sales rose by 11.7%, and HMV now commands up to 50% of the weekly market share in physical music sales.

This commitment to ‘real’ products extends beyond music. From cult fiction and graphic novels to Pokémon trading cards and exclusive merchandise, HMV has embraced a broader definition of entertainment retail. The lesson? Know your audience and serve them something they can’t easily get elsewhere.

As owner and turnaround pro, Putman says,

‘We’re more and more realising that we have multiple core customers and we have to make sure that we’re appealing to each of them. We’re seeing a lot of crossover; people buying vinyl but also picking up a band T-shirt, or a pack of Pokémon cards for their kids.’

2. Retail as an experience, not just a transaction

One of the most common mistakes in retail turnarounds is focusing purely on product while neglecting the in-store experience. HMV understood that survival in the digital age meant giving people a reason to visit beyond just buying music.

Its stores are now hubs of activity, hosting over 2,500 live gigs in 2023 alone. The reopening of the Oxford Street flagship wasn’t just about nostalgia, it was about creating a space where fans could engage with artists, discover new music, and experience the thrill of a physical store in ways that digital platforms simply can’t replicate.

Moreover, HMV has doubled down on the expertise and passion of its staff. Unlike faceless online algorithms, in-store teams are collectors and music aficionados themselves. They provide recommendations, curate selections, and engage in conversations that turn casual visitors into loyal customers.

3. Community-centric retailing

HMV’s ethos isn’t just about selling products; it’s about fostering communities. Whether it’s vinyl collectors, pop culture enthusiasts, or indie bands looking for a break, HMV has positioned itself as a champion of niche groups that traditional retailers often overlook.

A prime example is HMV’s 1921 Records label, which gives unsigned artists a chance to release music on vinyl and perform in stores. This initiative isn’t just a marketing gimmick, it’s a strategic move that reinforces HMV’s role as an integral part of the music ecosystem, rather than just a retailer.

MD, Phil Halliday, empahsises this when he said,

“our ethos is centred on community. We sit in the middle of an amazing number of communities, be they vinyl collectors, genre-specific fan groups or Comic Con fanatics.”

And artists like Taylor Swift helped to challenge the traditional record collector archetype, bringing the joy of ownership to a whole new generation. 

4. Calculated risks and smart expansion

Turnarounds require risk-taking, but not all risks are equal. Under the ownership of Doug Putman, HMV has balanced caution with bold moves. The Oxford Street relaunch, for example, was a high-stakes decision given the notorious cost of retail space in central London. But Putman and his team saw the potential for flagship stores to drive brand visibility and footfall, especially in a post-pandemic world where consumers are rediscovering the appeal of physical shopping.

At the same time, expansion into Belgium and Ireland and continued investment in smaller UK stores show a measured approach to growth. HMV has not overextended itself but has carefully tested new markets and formats before committing.

5. Rejecting bureaucracy and staying nimble

One of the most refreshing aspects of HMV’s revival is its rejection of bloated corporate structures. Instead of drowning in layers of middle management, the company operates like a ‘large family business’, with direct communication between leadership and store teams. Decision-making is fast, and ideas flow freely between employees at all levels.

This agility has allowed HMV to quickly adapt to customer trends, test new concepts, and respond in real time to cultural moments, like the recent Oasis reunion, which triggered a sixfold spike in sales of the band’s records.

6. Challenging the ‘high street is dead’ narrative

For years, conventional wisdom has predicted the slow demise of brick-and-mortar retail. HMV’s resurgence challenges this assumption. Yes, online shopping is dominant, but e-commerce’s share of retail sales in the UK has plateaued at around 26%. There is room for both digital and physical shopping, provided physical stores offer something unique.

The key takeaway here isn’t just that high street retail can work but that it needs reinvention. HMV’s success lies in making its stores about more than just transactions. They are places for discovery, social interaction, community, and cultural engagement, elements that online shopping struggles to replicate.

Final thoughts: A playbook for retail turnarounds

HMV’s revival offers valuable lessons for any struggling retail brand. Define your audience and serve them with passion. Create experiences, not just transactions. Build a community around your brand. Take risks, but make sure they’re the right ones. And, most importantly, keep your organisation nimble and free from unnecessary bureaucratic bulk.

The fact that HMV is no longer seen as a ‘dead brand’ is a testament to the power of smart, counterintuitive strategy. And, as Putman and Halliday continue to evolve the business, their story proves that comebacks aren’t just possible, but by embracing Planarian Behaviours, they can be transformative.

Looking for an injection of planarian behaviours in your business? Planaria are microscopic organisms that constantly find a way to regenerate themselves to survive and thrive. With our proprietary toolkit, you can bring planarian behaviours into your business, helping you keep ahead of the signals to drive continual regeneration and continuous growth.