Virgin reports successful Q4

Chain announces 18.1% growth in DVD sales

By Susanne Ault -- Video Business, 1/2/2008

JAN. 2 | Despite the announced closure of three locations in 2007, Virgin Megastores has declared the year a success, citing growth in several product categories including DVD.

Virgin’s fourth-quarter, same-store DVD sales jumped 18.1% over the 2006 fourth quarter. Additionally, fashion gained 35.1% and videogames increased 111.9%. Overall, Virgin same-store revenue improved 6.6% last month over December 2006.

The chain credits various upgrades it has made in the past several months, including launching the new retail Web site www.VirginMega.com.

Additionally, Virgin has further diversified its offerings by deepening its apparel, accessories and electronics merchandise.

“Marketing our brand as an entertainment retailer has been key to our success,” said Dee McLaughlin, VP of marketing at Virgin Entertainment Group, North America. “We’ve expanded our product lines heavily in the past year into fashion, accessories and personal electronics. There’s more to do in our stores these days. It’s a fun place to shop—whether you’re a gamer, a pop culture junkie, fashion maven, music fan, looking for hard-to-find DVDs, designer electronics or coming in to check out one of our live in-store performances.”

These achievements follow Virgin shutting its Chicago and Salt Lake City outposts in July. Its first U.S. location, in West Hollywood, Calif., will close its doors at the end of January. By February, Virgin will number 10 U.S. locations.

“It is the second consecutive year that sales have way exceeded our expectations,” said Simon Wright, CEO of Virgin Entertainment Group, North America. “We started seeing positive results in 2006 from our diversification strategy and the sales in those departments continued to climb throughout 2007. Virgin Megastores are being recognized as an entertainment lifestyle destination, rather than solely a music retailer.”

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