HMV plans for further Christmas pop-up stores

HMV will operate about 30 of the temporary stores over the peak period this year, compared with 20 in 2010, when they contributed about £1m to profit.

The shops, carrying a slimmed-down range of core product such as chart hits, will again be located in places where the retailer either does not have a shop or where an existing store is too small to meet seasonal demand.

HMV suffered a 15.1% fall in like-for-likes in the 18 weeks to September 3.

However, chief executive Simon Fox insisted that progress is being made on the turnaround. The retailer is installing a technology offer in 150 stores by October after a successful pilot.

Fox said if the sales trend in overhauled stores had applied to the portfolio in the first quarter, then the like-for-like figure would have been between six and seven percentage points better than reported.

He said: “We’re encouraged by what we’re seeing in our technology offer.”

However, Seymour Pierce analyst Freddie George said: “We remain sceptical given the structural pressures in its core marketplace.”