Music retailer enjoys improved trading

Music retailer Golden Discs has reported a significant improvement in trading, with its annual losses slashed by over €600,000 in its last financial year.

The Dublin-based business generated losses of €73,000 for the 12 months to the end of June, 2011; according to its latest annual report. Though still loss-making, theretailer significantly outperformed the Irish music retailing market, as a whole, during the period.

The company’s losses for 2011 compare to a 2010 loss of €710,000 and even larger losses of €1.6 million for 2009.

Compact disc sales in Ireland fell by 19%, last year, with sales of dvds falling by 13%.

Golden Discs said that its turnover only fell by 4.4%, in comparison, from €11.2m to €10.8m for the 12 months under review.

Subdued consumer sentiment, on the back of the continuing tough economic climate, was the main reason for last year’s sales dip, according to Golden Discs’ managing director, Stephen Fitzgerald.

“Continued economic uncertainty and related negative consumer sentiment are the primary causes for the sales decline.

“Unrealistically high property costs and local rates charges continue to challenge the company’s cost base,” he said.

However, Mr Fitzgerald added that promotional activity and lower prices are beginning to drive sales volumes, while the company is also planning to launch an online store — primarily for cd and dvd products — this autumn. It is also set to expand its branch network.

A recent opening in Athlone brings Golden Discs’ store network to 15 and the company hopes to open at least one further store — in an as yet unnamed location — before the end of this year.