[LINK] "'It's a big gamble': Record stores sound off on Sunrise's HMV takeover"
CBC News' Haydn Watters reports on what the music retail industry thinks about Sunrise Records' ambitious takeover of HMV stores across Canada. This does sound as if it could fail, badly.
Toronto's Sunrise announced last week it will be taking over 70 HMV stores in malls across the country, with the aim of having them up and running by midsummer and turning a profit by next year.
If it works, it's a boon for the industry, said Spencer Destun. But he's got his reservations. Destun runs the last surviving Sam the Record Man location at Belleville, Ont.'s Quinte Mall. Since opening in 1979, he said, he has seen about eight or 10 chains come and go — and his store is all that's left of Sam the Record Man.
"It's very tough to operate a store in a profitable manner today because the market is shrinking," he said.
"I can't even imagine the amount of organization and work that's going to take. Thank God they have some experience in the marketplace."
Sunrise currently has 10 locations in suburban Toronto and rural Ontario. Destun said he can't think of another instance in any industry where a business has tried to "tenfold their increase."