Avalon Holdings, owner of the second largest Dutch chain of entertainment shops Music Store and digital platform Digital Media Power, will introduce a new retail formula in April.

The new retailer has been dubbed 'Must,' which derives from Music Store, but also hints at the expression 'must-haves,' Avalon chairman Markwin Maring says.

"Must will be a luxurious entertainment store, selling gadgets and hardware from Sony, Bose and Apple and high quality merchandise," he adds. "Of course, we will offer regular CDs, DVDs and games, but especially deluxe Editions and box sets."

Apart from its physical assortment, every outlet will have a media lounge, where customers can surf the Internet and buy digital content. Maring calls Must "a totally new retail formula that doesn't exist yet [in the Netherlands]."

If a pilot in Rotterdam is successful, Avalon will roll out around 15 Must stores. As well as Dutch cities such as Amsterdam and the Hague, is considering taking the formula abroad. "Antwerp in Belgium and even London could be potential locations," he claims.

Later this year Avalon will launch a new, as yet unnamed, digital music service. Maring says it will take a new approach by analyzing users' music collections and allowing them to access this from various devices, and stream additional content from the same artists for free.

"We want to regulate and synchronize users' entertainment collections, so that they can access them everywhere via Internet or mobile, whether they're at home, at work, abroad or even in the car," Maring explains.

Avalon aims to create revenue from sales of a-la-carte downloads of the streamed tracks users want to keep, and it will charge a subscription fee to those whose personal store of tracks exceeds a certain amount, as these users would have the benefit of more tracks to stream.

The exact details of the service are still being discussed with rights holders.

As previously reported, the Music Stores will get a revamp and will offer in-store concerts, tickets, merchandise, hardware and books. More floor space will be provided for catalog CD and DVD titles.

Maring says he expects the turn-around to enable the Music Store chain to grow from 120 to 140 shops by 2013.

"Our current market share is 15%," he says. "I expect that percentage to rise to 18% this year. Meanwhile we want our year turnover, which totaled €60 million ($80.4 million) in 2009 and is likely to turn out the same this year, to increase to over €72 million ($96.5 million) in 2011."

Within that amount, the Must concept and new digital service should account for €12 million ($16.1 million) to €15 million ($20.1 million) of revenue.