HMV retail stores are screwed because they abandoned their core market for gimmicky tat. The music section in Leeds HMV is about a quarter of the size it used to be - it's now full of t-shirts, mobile phones, discount books and football memorabilia.
Did HMV not notice that there are far more successful businesses on the high street already selling this stuff cheaper, and with greater choice? In a changing market you have to evolve or die, it's true; but HMV's idea of diversification has been just plain bizarre.