HMV Experiments with Experiential Retailing

Music and entertainment specialist HMV and leading independent film distributor Curzon Artificial Eye have partnered on a new concept called hmvcurzon Wimbledon cinema.

Opened in late October, it is part of an effort by HMV to broaden its offering beyond a reliance on low-margin CDs and DVDs.

The hmvcurzon utilizes the non-trading second floor space above the existing HMV store and offers three screens with a total of 263 seats; the space includes a fully licensed café bar with a broad range of wine, beer, coffee, salads and gourmet sandwiches. The retailer aims to bring customers “closer” to the film by providing opportunities to take part in filmmaker discussions and discover forgotten gems at one-off screenings.

Via satellite, customers can enjoy everything from live opera, theater and other concerts to awards ceremonies, major sporting events and online gaming tournaments, and HMV is merchandising DVDs relevant to the events it screens. “The tie-up between the programming and the product will evolve over time, but that’s certainly the intention,” says HMV CEO Simon Fox.

While the store/cinema is only about 300 feet from the Odeon on Wimbledon’s The Broadway, hmvcurzon offers a “really interesting and different experience to the standard multiplex,” Fox says.

Whole new dimension
hmvcurzon is targeting a different crowd of cinema-goers with a more arty and niche collection of films, including independent and foreign language movies; Hollywood blockbusters will be shown only if they appeal to the core target market. With this approach, hmvcurzon is unlikely to face direct competition from its larger multiplex neighbor.

Ultimately, Fox hopes the retail business benefits from the addition of “a whole new dimension to the store. What we are doing is moving from being a retail store to an entertainment destination for the people of Wimbledon. The cinema drives footfall, and footfall drives sales.”

hmvcurzon meets the standards of other Curzon venues, using cutting-edge BARCO digital projectors and a state-of-the-art sound system designed by Munro Acoustics. The screens also are able to show 3-D digital movies, which are expected to become increasingly popular over the next year.

The retail store follows the design of HMV’s Next Generation Store, which was launched in September 2007. For this concept, the company invested heavily in technology like digital kiosks and broadening its offer, turning the store into a multi-channel entertainment destination.

Diversifying revenue streams
This joint venture with Curzon, first announced in April, is the latest example of HMV diversifying its revenue streams. The group also is partnering with Mama Group on live music venues and has forged agreements with mobile phone company Orange and digital distributor 7digital.

The hmvcurzon in Wimbledon will operate through late January before any decisions about a wider rollout are made. Given the high investment costs needed to convert such a space, much rests on the success of this initial venture.

But as HMV decreases its retail offering there will be an increasing number of larger stores with excess space that could house a cinema. The company indicates that the next store to be converted is likely to be outside of London.