Transcript
Newsletter
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The stars call in at 363
Q4 2013
Just six months on from Hilco Capital’s acquisition
of the collapsed HMV UK business from its
administrators, a newly re-energised HMV brought
Europe’s busiest shopping street to a standstill when
legendary musician Sir Paul McCartney dropped in
to officially launch the company’s new flagship store
at 363 Oxford Street, London (pictured above).
Located on the site of the
original HMV store, which
first opened in 1921 but
closed at the turn of the
century, 363 Oxford Street
is steeped in history and
HMV’s return home formed a
fitting centrepiece to a month
of high profile launches and marketing activities
that saw HMV firmly re-established in the public
consciousness as, in the words of the brand’s new
tagline, the “home of entertainment since 1921”.
The editorial team from HMV’s slick new, content-
rich website – which went live in October – were on
hand to document the proceedings. Head to hmv.
com to read their article on the significance of the
363 Oxford Street store and to watch a short film of
the memorable day that Macca called in:
goo.gl/Vqjhqb.
In a first for HMV, 363
Oxford Street includes an
entire floor dedicated to in
store events. In the run up to
Christmas, the second floor
venue hosted an acoustic
performance by X Factor and
Take That star Gary Barlow
while comedians Steve Coogan and Karl Pilkington
came in to meet fans for DVD signing sessions. 363
will host a different live event each week through
2014 with intimate performances from You
Xtra-vision, Ireland’s largest
entertainment retailer, has
expanded its footprint with the
launch of DVD and Blu-ray movie
rental vending machines in Spar
and Eurospar stores. The initial
phase saw the company roll out
20 kiosks in stores across the
Greater Dublin area in October.
Leading Irish model Rozanna
Purcell (pictured) became the
first person to rent a DVD from
an Xtra-vision vending machine
at the media launch event.
The machines have generated
impressive sales to date with
customers clearly appreciating
the convenience of renting the
latest films without the need for
a subscription, months before
they’re available on online
streaming services. Plans are
underway to expand the vending
machine network in 2014.
Xtra-vision rolls out vending machines
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The rebuilding of HMV’s Irish
business gathered pace in the
fourth quarter with the opening
of 31 dual-branded HMV/Xtra-
vision stores in addition to a fifth
standalone HMV store. A further
15 HMV concessions will open
in Xtra-vision stores in the first
quarter of 2014.
The Wanted and John Newman
headlined a series of in-store
performances and signings,
continuing the momentum gained
in Q3 with memorable PAs by The
Strypes and Biffy Clyro.
HMV Ireland also launched
transactional websites, serving
the Republic of Ireland through the
Euro-priced hmv.ie and Northern
Ireland through a sterling-priced
site at hmvireland.co.uk. Further
work on the sites in 2014 will
see ecommerce integrated with
the content and discovery-led
direction pioneered by hmv.com
in the UK.
HMV re-establishes across Ireland
Me at Six and Within Temptation already
lined up for January and many more gigs, signings
and experiential events planned in collaboration with
HMV’s suppliers across music, film, TV, technology
and games.
Mobile Apps
October also saw HMV enter the digital music
market in the UK with the launch of innovative new
apps for Apple and Android smartphones, together
with the HMV Digital web store in the first phase of
the brand’s new digital strategy.
In a 21st century twist on the in-store listening post,
the HMV app’s Image Search functionality lets users
scan CD covers, posters or ads with their phone to
instantly access audio previews of
the tracks on the album or
single. Sound Search gives
users the option to use
their phone to identify tracks
that are playing in store, on
the radio or anywhere else
while the HMV Digital web
store provides high quality
MP3 downloads of millions of
tracks, together with the ability
to preorder forthcoming releases.
The new apps were downloaded
over 10,000 times in the first week
alone and have been registered by
the Official Chart Company so their
sales figures contribute to the UK
Top 40 singles and album charts. The
services were extended to Ireland in November and
launched in Canada, where the app is also available
on the Blackberry 10 platform, in December.
More Cool Stuff
October drew to a close with the much anticipated
UK relaunch of purehmv, HMV’s popular loyalty and
rewards programme, offering the chance to redeem
points earned on purchases at HMV for ‘cool stuff
money can’t buy’ and, for the first time, savings at
retail partners such as Top Shop.
The HMV Football Extravaganza acted as a fitting
conclusion to a monumental month of activities. The
prestigious event, which was created by HMV 17
years ago, brings together the music
industry and the world of football
to raise funds for Nordoff Robbins
and this year saw HMV’s rightful
return as headline sponsor after a
four year absence. The event saw
Pelé presented with the Legend of
Football award (pictured above).
Friday Phenomenon
In Canada, HMV celebrated a
record breaking Black Friday
in November. Footfall was
up 65% year-on-year with
the Blu Ray and technology
categories seeing 35% like
for like sales increases while gifts
& collectables and apparel were up 70% and 88%
respectively. Purehmv members accumulated over
300 million bonus points on their transactions.
The Black Friday retail concept became widespread
in the US in 2005 and started to gain traction
north of the border in 2008. Increasingly a global
phenomenon, 2010 saw Black Friday reach UK
shores via US companies Amazon, Apple and
Walmart while John Lewis took part in 2013.
www.hilcocapital.com Hilco Capital Newsletter Q4 2013 3
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Cracking year for Denby Pottery Group
Hilco Capital appoints EU Director
Denby Pottery Group topped a vintage year off with
a very strong fourth quarter, leading to total sales
of its eponymous Denby branded product reaching
£44 million – an increase of 11% over the prior year.
Despite reports of discounting in the high street over
the Christmas period, gross margin in the business
also increased.
A year of intensive focus on export markets resulted
Erik van Heuven has joined
Hilco Capital as Business
Development Director for Europe.
A senior retail and wholesale
executive with almost 30 years’
experience, Erik’s background
includes entertainment, fashion,
hypermarket and department
store operations across Europe.
For the past ten years, Erik has been active in
in Denby’s business in Canada, the USA and South
Korea, in particular, growing at record rates to reach
£7 million and the business will enter 2014 with a
healthy order book across its product lines.
Denby subsidiary, Burleigh, which is based at the
Middleport Pottery in Burslem, also achieved record
sales after a 20% increase in business over the prior
year. This increase in business was achieved despite
some disruption to the production facilities as the
Prince’s Regeneration Trust works on the restoration
of the historic Middleport Pottery.
Poole Pottery, which is now also based at Middleport
Pottery, recorded a 6% increase in sales.
Denby Pottery Group’s products have become an
increasingly regular fixture on the small screen
this year, reflecting the resurgence in popularity
of premium quality, British-made ceramics. The
company’s Denby, Leeds Pottery and Burleigh
products regularly appear on programmes as diverse
as Paul Hollywood and Mary Berry’s respective
baking shows, BBC primetime drama Sherlock,
Coronation Street, Downton Abbey, Made in Chelsea
and Kirstie Allsopp’s Vintage Home.
Germany as a retail consultant,
COO and CEO in companies with
revenues between €300 million
– €3 billion. Erik holds a Masters
Degree in Communication
Science and an Advanced
Masters in Management.
Erik will seek opportunities to
expand Hilco Capital’s business across France,
Germany, the Netherlands, Austria and Scandinavia.
Hilco Wholesale acquires former Collectables stock
Hilco Wholesale purchased
£4 million of stock from the
administrators of Collectables,
a homeware, furniture and
gifts retailer with stores located
primarily in the North East of
England. The stock package
includes leading brands such
as Swarovski, Steiff, KitchenAid,
Myer’s beds and Yankee Candle.
Hilco’s retail team opened a short
term seasonal clearance store in
Stockton-on-Tees in November in
order to capitalise on Christmas
trade in the heartland of the
previous Collectables business.
The store, on the site of the
largest of the old Collectables
stores, trades under the name
House&Home.
Hilco Wholesale will sell the
remaining stock directly to its
retail customer base, including
many well known names in
ecommerce.
4 Hilco Capital Newsletter Q4 2013 www.hilcocapital.com
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Published by Hilco Capital Limited, 80 New Bond Street, London W1S 1SB · Tel (0) 207 317 2050 · Fax (0) 207 317 2051 · © 2014 Hilco Capital Limited · All rights reserved © 2014 Hilco Capital Limited · All rights reserved
NEWSFROM
ACROSSTHE POND
Hilco Merchant Resources was appointed to manage another major Blockbuster disposition as owner Dish Network cleared the inventory in its 316 remaining stores in order to switch to a purely digital business model.
Hilco Streambank completed its latest premium domain name auctions with the sale of desirable web addresses including DL.com, bargain.com and 800.com. The company has also been appointed to sell the non-core IP assets of Aeris Therapeutics, an early stage medical technology company.
Hilco Real Estate has been retained as real estate advisor by F&H Acquisition Corp. as the company goes through a bankruptcy process. F&H is the principal owner of casual dining restaurant chains including Fox & Hound, Bailey’s Sports Grille and Champps, comprising over 100 restaurants across 27 states.
A special Miss America episode of Cupcake Wars aired on the Food Network in November as part of Hilco Brands’ ongoing work to revitalise the Miss America brand and raise awareness of its work as the world’s largest provider of scholarship assistance to young women.
Hilco Industrial announced the sale of the largest industrial machining facility to come to market in December. The DMR Produktionsgesellschaft facility in Rostock, Germany includes 36 extremely large state-of-the-art CNC systems.
Successful 2013 sees Kraus on a roll
Debenhams expands Twice2much remit
Record year for George & Freddie
Building on the success of several
ongoing projects for Debenhams,
Twice2much has been appointed
to conduct a review of revenue
receivable from the department
store chain’s concessions.
Q4 also saw Twice2much win
new clients including sportswear
retailer Footlocker Europe which
signed up for service charges
and telecoms reviews.
Flooring manufacturer and distributor Kraus Group
enjoyed a successful end to an extremely busy
year that saw the business return to growth and
profitability. Major initiatives completed in 2013
included the recruitment and appointment of a new
business leadership team, securing a new financial
package for the company and a progressive cost
reduction and quality improvement programme.
The latter half of 2013 saw Kraus consistently
achieve year-on-year sales growth, culminating in
a 20% increase sales in December – traditionally
a slow month for flooring sales. Highlights included
sales at Canada’s Carpet One convention hitting
20 times 2012 sales and over 187 new display
placements being achieved with dealers across the
country in the last two months of the year.
In the USA market, one of the world’s largest
retailers completed a full range review and added
a further 15 new styles to the 11 already stocked.
These new styles will be launch in May 2014. Two
other key US customers, ProSource and Flooring
America, confirmed that a further nine styles will be
added to their range in 2014.
To further improve customer service levels on
smaller carpet orders, the company invested in a
new dyeing facility which went live in December. The
new equipment gives Kraus the capability to rapidly
produce smaller orders more quickly and efficiently.
Retailer George & Freddie,
which trades primarily through
the Amazon, eBay and Play
marketplaces and public
auctions, ended the year with
a strong sales performance as
group turnover grew by 90%
year-on-year. The performance
was driven in part by the launch
of the second auction site which
has now opened in Liverpool and
is currently holding two sales a
week.
The company is in the process of
developing its own transactional
website which is due to launch in
the first quarter of 2014. Head to
www.georgeandfreddie.com
for more details.
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