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Not true. I don't know about in the UK, but I have found some of my favourite CD's and movies at my local HMV. Hell, I did the majority of my Christmas shopping there. They often have great 2/25 or 2/20 deals on CD's which I just eat the fuck up. And seasons of Seinfeld go for ten dollars!
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The thing is that even when they have a deal on CDs, I can get the same CD for around the same price at a smaller shop (although quite a few of those have closed down now), plus there's a greater variety. I've bought good things from HMV before, but their stock just seems to get worse and worse, and the music section smaller and smaller.