HMV Group has continued to cite tough trading conditions for its negative like-for-like sales performance. Indeed, data released by the British Video Association already shows a 13.5% decline in total year-to-February 2011 retail sales, compounding the 8.3 per cent year-on-year sales decline in the UK physical video market in 2010. On a more positive note, according to the same BVA report, the January 2011 increase in VAT (sales tax) in the UK has enabled retailers to increase average video pricing by more the 2.5 percentage point tax increase. This uncharacteristic rise in pricing (up 3.7 percent) will help to stem the overall fall in UK consumer spending on video, assisting HMV, whose business remains rooted in the physical video market, longer term. Despite this, the company's debt will force it to seek additional financing either by raising equity or perhaps through the sale of high street bookstore chain Waterstone's.