EUK, the entertainment wholesale subsidiary of U.K. retail giant Woolworths Group, has won a three-year contract to supply Virgin Retail Limited with entertainment and associated goods.

Starting June 1, EUK will assume responsibility for buying VRL's core entertainment categories of music, DVD, games and books, alongside peripheral categories. "Key VRL personnel" will transfer to EUK as a result of the move, according to a statement issued by VRL, which operates 127 stores in the United Kingdom and Republic of Ireland.

As a result of the deal, EUK is to take responsibility for physical distribution to VRL outlets no later than April 2008. Starting in mid-2007, EUK will cease to supply supermarket group Tesco with entertainment product.