Amazon has galloped past competing entertainment retailers to take more than a fifth of non-digital video game, film and music sales in the UK.
The American e-merchant increased its sales by nearly 5% in the three months to the end of September to take 22.5% of the entertainment market, according to the latest data from Kantar Worldpanel. Amazon’s strong growth strengthens its lead over its closest rival, Tesco, whose sales plunged 5.5% to leave it a 15% market share.
HMV, which hopes to overtake Amazon to become the UK’s largest film and music retailer, was unable to stand still, holding 12.3% of the entertainment market.
Fiona Keenan, director of strategic vision, said Amazon’s success demonstrates the general shift towards online shopping. “Thanks to the rise of connected objects – 71% of individuals now own a smartphone and 57% a tablet – this is an evolution that we plan to continue. Amazon’s Fire tablet line has given it another platform to promote its offering directly to consumers, and it seems to be working, since 15% of entertainment products sold on its site are purchased on a tablet. “
All supermarkets have lost market share compared to the same period last year; they suffered from the lack of a hit game or music album this year after winning sales since the launch of Grand Theft Auto V in 2013. Supermarkets accounted for 53% of the game’s sales and without its success their Game market share this year has halved, Keenan said.
Meanwhile, HMV, the only major street entertainment retailer in the UK, likely suffered as the only non-digital entertainment market to grow was cinema. DVD and Blu-ray sales increased 3% thanks to the release of Lego Movie and TV sets such as Game of Thrones.