HMV signs Orange deal as sales grow

HMV is continuing to diversify into new areas with an agreement with Orange to sell the mobile phone company’s products in its stores, a move which comes as the entertainment retailer reports further sales growth.

The deal will see Orange branded ‘show and sell’ spaces in HMV stores, with a focus on music, games and video mobile handsets and services.

The Orange deal follows a number of diversification moves by the retail as it aims to widen its offering.

Earlier this week, the firm announced it is to open cinemas following a deal with independent operator Curzon, which followed its agreement with live music operator Mama Group earlier this year that saw several live music venues re-branded with the HMV brand.

The first wave of concession stores will be rolled out this June 2009, with the HMV stores in Glasgow, Plymouth and Teesside earmarked as the first to incorporate an Orange offer. Up to 100 locations have been earmarked to take the store-in-store approach by Christmas.

HMV Group says total sales increased 4.8% in the 16 weeks to April 25, with HMV sales up 8.3%, which offset a 3.4% decline in sales at its Waterstone’s stores.

The group says it is confident that profits before tax and exceptional items will be “towards the upper end of market expectations”.

In the UK, HMV has benefited from the demise of Zavvi, buying 23 of its stores, and Woolworths.

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