Australian retailer Brazin Ltd today (Tuesday) has struck a deal to rebrand the CD and DVD departments of 67-store retail chain Myer with the Virgin brand. It is part of a three-year pact between Braz
Australian retailer Brazin Ltd today (Tuesday) has struck a deal to rebrand the CD and DVD departments of 67-store retail chain Myer with the Virgin brand. It is part of a three-year pact between Brazin and Myer, which comes into effect August 29.
Sydney-based Brazin, which owns music retailer Sanity Music, pays a royalty for the use of the Virgin name in a deal struck in October 2001 with Richard Branson's London-based Virgin Entertainment Group.
Brazin will spend A$16 million ($11 million) to rebrand, restock and redesign the music and film sections of Melbourne-based Myer's nationwide stores. Virgin staff will take over those departments, and former Myer staff will be deployed to other sections of the stores.
At the same time, Brazin will take over management of the CD and DVD departments of Myer's budget Megamart chain. Brazin will offer new releases and extensive back catalog of DVDs and CD to the outlets, which will continue with current staff. Brazin says it will invest A$2 million ($1.2 million).
"The alliance with Myer would provide immediate scale for Brazin, especially in the fast growing DVD market," comments Brazin's Sydney-based managing director/CEO Greg Milne. Myer is estimated to have a 4%-4.5% share of the local music retail market, according to suppliers.
Virgin entered the Australian market with three stores in 1987, but exited in 1994. It returned in 2001 under the Brazin deal; Virgin chairman Sir Richard Branson told Billboard at the time that he intended to open 100 stores and gain a 6%-7% market share in its first 12 months of business. Brazin currently runs no more than a dozen Virgin stores.