Abu Dhabi: Virgin Megastore has been working on changing its business format over the past two years in order to keep up with the latest industry trends, and attract a wider range of clientele, according to Nisreen Shocair, president of Virgin Megastore Middle East.

The entertainment retail chain, which once relied on sales of music records, is now launching multiple concept stores across the region, and expanding its product range. It is also targeting a wider demographic of customers.

“Today 60 per cent of our [customers] are under 29 [years old], and 35 per cent are females. It’s a long way that we’ve come from six years ago when five per cent [of our customers were] women, and our average age was definitely 35-plus,” Shocair said.

Speaking to Gulf News at the launch of the UAE’s first concept store in Yas Mall, Shocair said that the new business format has been bringing double digit growth to the group, but did not specify figures.

While CD sales have been dropping as more customers rely on the internet to download music, Virgin Megastore has been expanding its product range to include vinyl, music merchandise, concert tickets, and headphones, among other products.

“With films, I’m doing the same; I’m selling you the DVD, and the collectibles. So if you’re a Lord of the Rings fan or a Gone Girl fan, I’m selling you the book, the merchandise, the memorabilia, and so on,” the president said.

She added, “Music and video used to be almost 50 per cent of the business in 2005. Today, it’s less than 15 per cent as CD’s and DVD’s. In music, we’re seeing double digit growth in vinyl, which is up 70 per cent, and young people are buying vinyl.”

The concept store builds upon the notion of attracting younger customers by having street art around the store, having a wider brand range including brands that are new to the Middle East, and having an urban interior design — all of which help achieve financial success on the long run, according to Shocair.

The new concept, which carries at least 50 suppliers that are not found in other locations, has also proved to be successful with almost triple the expected sales figure for the store’s launch, and the high sales are expected to continue.

While Shocair did not specify how much of an investment the store was, or the expected return on investment, she said, “We invested heavily across the board … and we found the best in class to build this shop. I think in general no one wants to go in business if you’re making less than 25 or 27 per cent return on investment.”

She added, “I don’t see us doing more than five or six [concept stores] in the region, mainly because you need this kind of space and large footprint. The next one will be in Qatar next year.”

Discussing expansion plans, Shocair said that Virgin Megastore is set to have its strongest expansion plans over the next two years, with its first store in Al Ain in the first quarter of 2015, and its first store in Oman in Q3 2015. The group is also looking into Sharjah to find a suitable location for an outlet.