WH Smith CEO Kate Swann has made it clear that the High Street retailer has no intention of expanding its entertainment offering following HMV’s collapse, because “entertainment retail just isn’t profitable”.
CDs and DVDs have found increasingly narrow shelf space at the retailer in recent years, as the brand has put more focus on the sale of books, stationary and news.
Speaking to the Financial Times, when asked whether WH Smith would boost its entertainment section following HMV’s decline, Swann said “[Entertainment retail] just isn’t profitable. HMV was the last man standing: pretty much everybody went because nobody could make any money out of it.
"You can’t create a proposition which customers find attractive and make money with the current structure of the market.
“If there was some way we could change that structure and could create something which is attractive to customers, and you could make some money, yes, that would be our reason to reconsider it,” she added. “Otherwise no.”