Blockbuster joins HMV in administration header image

The increasing number of people using satellite broadband and other technology to shop online have contributed to the falling-off in sales experienced by retailers such as HMV and Blockbuster, it has been claimed.

Both companies filed for administration this week, with Blockbuster administrator Deloitte pointing to the prevalence of ecommerce as a major factor in the businesses' woes.

Professor Ajay Bhalla at Cass Business School told the Manchester Evening News that the high street is continuing to suffer as online sales increase.

"Firms like Blockbuster failed to face up to the enormity of the change and altered their business model on the fringes ... rather than coming up with an innovative offering," he added.

Digital streaming, the ability to order DVDs and games online, and the growing power of supermarkets have all been cited as services reducing the role of specialist retailers such as HMV.

However, poor consumer spend is also an issue, with fellow high street chain Jessops falling into administration last week.

Posted by Justin McKenzie