HMV admits mistakes after profits warning

Music and books retailer HMV today said it had paid the price for failing to react quickly enough to changing consumer demands as it issued its second profits warning since the start of the year.

Children’s books, a stationery range and new interactive HMV stores with a “refreshment hub” are now planned for the group as part of a recovery strategy aimed at boosting sales and saving £40m (€58.5m) a year by 2010.