Business | Markets

Virgin Megastore obtains licence for 13 more years

Virgin Megastore Middle East has signed for rights with Virgin Store France to continue operations in the region for the next 13 years.

  • By Nadia Saleem, Staff Reporter
  • Published: 00:10 May 29, 2008
  • Gulf News

Dubai: Virgin Megastore Middle East has signed for rights with Virgin Store France to continue operations in the region for the next 13 years.

Azadea Group, the holding company for Virgin Megastore in the Middle East, first licensed the brand from Virgin Stores France in 2001 for a seven-year period.

As part of expansion, the company will launch three new outlets in the region and move into Bahrain and Qatar within 18 months.

"The investment is close to Dh30 million for new outlets as well as updating current operations," Nisreen Shocair, Middle East president for Virgin Megastore told Gulf News.

The entertainment store has seen a 60 per cent increase in business turnover since last year and they expect to double their business in the coming two years, officials said.

Expansion plans

Their expansion plans include 25 new stores in the next three years, according to reports.

"Regionally, the brand has seen a 50 per cent year-on-year growth since the start," an official statement said.

Currently, there are five stores in the UAE and 11 in the rest of the region, including Kuwait, Jordan, Egypt, with new stores coming up in Bahrain and Qatar. Officials said they are also considering Oman as an option.

The stores' number one seller is multimedia in hardware and software format. "Next year multimedia will contribute 38 per cent of business turnover," Shocair said.

Jean Noel Reinhardt, chief executive of Virgin Stores France, said: "Regional talent in music and film is creating a demanding consumer market that requires constant innovation and so there is a huge opportunity in Virgin Megastores here."

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