SOURCE: Virgin Entertainment Group North America

January 03, 2008 09:00 ET

Virgin Megastores Wrap Up 2007 With Strong 4th Quarter Sales

Virgin Megastores Achieves a Strong Holiday Season With Record-Breaking Sales and a New Retail Website

LOS ANGELES, CA--(Marketwire - January 3, 2008) - As 2007 drew to a close Virgin Megastores achieved one of the most successful years the U.S. chain of stores have ever had. 2007 has been an active year for the company. The company has achieved same store comparable sales growth of 6.6% in December and 11.5% over the final quarter of the year. The U.S. chain of Virgin Megastores have also launched a new retail website, www.VirginMega.com, a Social Media Online Newsroom, www.VirginMegaMashup.com, and a customer feedback online Bulletin Board. The brand's diversification strategy, which provides many different entertainment products to the consumer, are contributing factors to the on-going success of the British-born entertainment retail store. These areas have seen significant sales increases in the fourth quarter including: DVD sales up 18.1%, Fashion sales up 35.1%, and Video Game sales up 111.9%.

Virgin Megastores are also doing well in the music category. While the music industry continues to see a dipping trend in overall sales, down 15.3% year to date, the Virgin Megastores are up 1.2% overall for the year 2007.

"It is the second consecutive year that sales have way exceeded our expectations," states Simon Wright, CEO, 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."

"Marketing our brand as an entertainment retailer has been key to our success," explains Dee Mc Laughlin, VP of Marketing, 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 live in-store performances."

ABOUT VIRGIN ENTERTAINMENT GROUP

Virgin Entertainment Group is the world's leading multi-channel music and entertainment retailer, providing customers with a range of superior entertainment experiences through a family of integrated Virgin-branded businesses. The "category killer" Virgin Megastores and Virgin Megastore Online at www.virginmega.com are integral parts of a strategy to provide entertainment customers with what they want, how they want it, and when they want it. For more information, or to check out the location of the nearest Virgin retail, go to www.virginmega.com or www.virginmegamashup.com

Contact Information

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