HMV is to expand its DVD offer aggressively in Canada, in a drive to become that country's category market leader.
Although HMV is winding down its US operation, group chief executive Alan Giles believes there are opportunities in Canada, where HMV has 100 stores.
Giles said: 'The real gain (in the US) is through Canada. There's a massive opportunity in DVD there that is so much larger, in relative terms, than in Britain.'
The Canadian DVD market is more than one and a half times as big as the music market. Giles said that HMV has so far not made enough of back-catalogue DVD ranges in Canada.
Wal-Mart is one of the Canadian DVD market leaders, but Giles is convinced that HMV can exploit its specialist credentials to take pole position.
Meanwhile, the group's book chain, Waterstone's, is to open a flagship 23,000 sq ft (2,135 sq m) store on Oxford Street this autumn.
The superstore will be in the mould of the Piccadilly and Gower Street branches, according to the retailer.
Waterstone's acting managing director Brian McLaughlin said: 'We are constantly working to identify new markets for Waterstone's branches, and this Oxford Street site is second to none as far as location is concerned.'
HMV Group disclosed group sales up 2.6 per cent to£734.2 million for the six months to October 25, 2003. Like-for-like sales were up 0.5 per cent, while pre-tax profit increased by 70 per cent to£10.7 million.
For the five weeks to January 3, group like-for-like sales were up 3 per cent.
Separately, HMV has renewed its sponsorship of the Virgin Radio Album Show.
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