Virgin Megastores
| Company type | Retail brand |
|---|---|
| Industry | Entertainment retail |
| Founded | 1976 |
| Founder | Richard Branson |
| Headquarters | London , United Kingdom |
Area served | Worldwide (primarily Middle East and North Africa as of 2015) |
Key people | Ian Duffell (former President & CEO until 1998), Simon Wright (former CEO 1999–2009) |
| Products | CDs, video games, books, DVDs, vinyl records, magazines, portable media devices, accessories, Virgin-branded merchandise, electronics, computer accessories, fashion lines, mobile products |
| Owner | Virgin Group (partial ownership), various other owners including Lagardère Group and Butler Capital Partners in different regions |
Number of employees | Approximately 1,000 in France (2013) |
Virgin Megastores is a global entertainment retail brand, established in 1976 by Richard Branson as a record shop located on London's Oxford Street.
The first Megastore debuted in 1979 near the intersection of Oxford Street and Tottenham Court Road. Throughout the 1990s, the chain grew to encompass hundreds of outlets worldwide; however, during the 2010s, numerous locations across Europe, North America, Australia, Japan, and China were either sold or shut down. By 2015, Virgin Megastores' presence was mainly concentrated in the Middle East and North Africa.
Early business initiatives by Branson
Richard Branson and Nik Powell initially operated a modest record shop named Virgin Records and Tapes on London's Notting Hill Gate, focusing on "krautrock" imports. They enhanced the shopping environment by providing bean bags and complimentary vegetarian snacks. Building on this success, they launched the Virgin Records label. The term Virgin was chosen to signify their newcomer status in the business world. Their inaugural release was Mike Oldfield's progressive rock album Tubular Bells in 1973.
Development of Virgin Megastores
Virgin's first official retail outlet opened on London's Oxford Street in early 1971. The initial Megastore was established in 1979 near Oxford Street and Marble Arch. Virgin Megastores and Virgin Records functioned as distinct entities. During the 1980s and 1990s, Virgin Megastores expanded to over 100 locations across the UK and numerous international sites in Asia Pacific and North America under Ian Duffell, who served as President & CEO of Virgin Entertainment Group until 1998. Simon Wright, CEO from 1999 to 2009, further accelerated growth particularly in the Middle East before subsequent divestments described below.
Ownership Structure
Virgin Group does not hold complete ownership of Virgin Megastores. In the early 2000s, it divested most Megastore outlets to various firms including the Lagardere Group. By 2001, control was divided: Virgin Group maintained stores in the UK, Ireland, US, and Japan; Lagardère took over French locations as well as global travel retail stores spanning Australia, China, United Arab Emirates, Qatar, Greece, Italy, Egypt, Lebanon, and Jordan.
Middle Eastern operations operate under V Star Multimedia LLC. Former Virgin Megastores Japan are owned by Culture Convenience Club and have been rebranded to Tsutaya. In Australia, Virgin Megastores and Virgin at Myer outlets were managed by Brazin Limited (later Sanity Entertainment) until their closure in 2010; Brazin also oversaw local HMV stores. In December 2007, Butler Capital Partners began acquiring a majority stake of the French division from Lagardère, completing this transaction by February 2008.
In 2007, Related Companies together with Vornado Realty Trust purchased Virgin Megastores North America. These landlords aimed to terminate low-rent leases at profitable US locations to replace tenants with higher-paying ones, which led to all American stores being closed.
| Region | Operator/Owner | Books & Music Availability | Store Count |
|---|---|---|---|
| UK & Ireland | Zavvi Entertainment Group (2007–2008) | ☒ | 125 stores, all closed |
| France | Butler Capital Partners (80%) / Lagardère Group (15%) / Virgin Mobile France (5%) | ☒ | 35 stores, all closed |
| La Réunion (France) | SA Mediastore (100%) under Virgin licence | ☒ | Single store, closed (licence ended 2010) |
| Australia | Brazin Limited/Sanity Entertainment (2001–2010) HDS Retail Asia Pacific/Lagardère (2004–2012) |
☒ | 24 stores, all closed |
| USA | Virgin Entertainment Group (Related Companies/Vornado Realty Trust) | ☒ | 23 stores, all closed (including 2 Virgin Books and Music) |
| Japan | Marui Co/Culture Convenience Club/Tsutaya Stores Holdings (1990–2009) | ☒ | 22 stores, all closed (rebranded Tsutaya) |
| Greece | Vivere Entertainment | ☒ | 15 stores in 2005 – all closed |
| Hungary | Fotex Records | ☒ | One store in 2000 – closed |
| Italy | ☒ | Four stores, all closed | |
| Spain | Virgin Retail Europe/ Virgin Retail España | ☒ | Nine stores, all closed |
| Germany | HDS Retail/Lagardère Group | ☒ | All five stores closed |
| The Netherlands | Free Record Shop group | ☒ | Four stores, all closed |
| Canada | Virgin Entertainment Group | ☒ | All stores closed (including one Virgin Books and Music) |
| Middle East (UAE, Qatar, Bahrain, Egypt, Jordan, Oman, Kuwait) | Virgin Megastores Middle East (Azadea Group) | check | UAE: 13; Qatar: 4; Egypt: 3; Jordan: 2; Bahrain: 2; Oman:1; Kuwait:1 |
| Region | Operator/Owner | Books & Music Availability | Store Count |
|---|
Product assortment
Virgin outlets present an extensive variety of CDs, video games, books, DVDs, vinyl records, magazines, portable media devices, accessories, and Virgin-branded merchandise. Larger stores often include electronics and computer accessories in their inventory. Although not every store carries all categories, flagship locations generally offer the complete product lineup.
In 2003, U.S. Virgin stores broadened their inventory to feature multiple fashion lines inspired by Pop culture, Streetwear, Urban styles, and Movie & TV themes, complementing their music, DVD, and gaming selections. Most Virgin Megastores also housed dedicated Virgin Mobile sections selling mobile products. Some venues featured cafes or coffee shops managed by external operators.
Technology
In 2005, Virgin Digital was introduced as an online platform for customers to buy digital music and manage their collections. This service was designed to enhance Virgin’s physical retail presence rather than replace traditional Megastores. Despite its intentions, the platform faced criticism due to incompatibility with popular devices such as the iPod and was ultimately discontinued. On an international scale, Virgin operated other digital music platforms like VirginMega.fr, which ranked as France’s second-largest music download service.
Austria
The only Virgin Megastore in Vienna, situated on Mariahilferstraße, was sold off and closed in 2003.
France
France had 35 Virgin Megastores alongside twelve outlets branded Furet du Nord and roughly ten international stores under the same ownership umbrella. The French Megastore venture was initiated in 1988 by Richard Branson in partnership with Patrick Zelnick, CEO of the music publisher Naïve.
In 2001, the Lagardère Group took over the chain. By December 2007, Butler Capital Partners revealed plans to acquire a majority share from Lagardère, completing the transaction in February 2008. According to Lagardère’s 2007 report, 80% of Virgin stores were sold for €76.4 million while retaining a 20% stake. Before this sale, 51% ownership of VirginMega—France’s second-largest digital music retailer—was transferred to the Virgin Stores company (which Butler acquired), with Lagardère Active maintaining the remaining 49%.
In July 2012, LS Travel Retail declared intentions to retire the Virgin Entertainment brand in France starting in 2013 by converting existing Virgin travel outlets into larger Fnac stores with expanded product offerings.
By January 2013, Virgin Megastore France filed for bankruptcy after a significant reduction in operations left 26 stores employing about 1,000 workers. The company sought to end its lease on its flagship Champs-Élysées location after a quarter-century of operation. In June 2013, the business was liquidated and ceased operations following a 25-year tenure within the French market.
Germany
Virgin Megastore withdrew from Germany in 1994 due to restrictive regulations on store closing times. Currently, the Virgin brand appears on a small number of convenience shops managed by the Lagardère Group primarily located at airports and train stations. As of September 2019, seven Virgin outlets operated in Germany, with four situated at or near Frankfurt airport.
Greece
By mid-2005, Vivere Entertainment was managing 15 Virgin Megastores across Greece. Nevertheless, by 2015, Virgin Megastores had completely withdrawn from the Greek market.
Hungary
Hungary's inaugural Virgin Megastore debuted in Budapest’s Duna Plaza shopping center in 1996, launched by Fotex under a franchise arrangement that lasted until 2000. Between 2001 and 2006, the outlet operated under the name "Hungaroton Gigastore" before closing its doors in 2006. No additional Virgin Megastores were established in Hungary after this period.
Ireland
The first Virgin Megastore in Ireland opened in Dublin in 1986, with expansion reaching cities like Cork by the early 1990s. Plans to develop an Ireland-specific e-commerce platform were abandoned following the divestment of Irish operations in 2007. At its height, Virgin managed six stores across Ireland; however, closures commenced from 2002 onward due to ongoing financial difficulties. In 2007, a management buyout separated the Irish and UK outlets from Virgin Group, rebranding them as Zavvi. After Zavvi’s supplier collapsed in December 2008, all Irish stores closed by January 2009, with some locations subsequently acquired by alternative music retailers.
Italy
The Virgin Megastore located in Milan’s Piazza Duomo shut down in February 2004. Following Virgin Retail Italy’s bankruptcy filing, an Italian court mandated the immediate closure of three out of four remaining outlets in May 2004, permitting only the Bergamo store to remain open temporarily for stock clearance. The former Milan store has since been converted into a Mondadori retail outlet.
The Netherlands
During the 1990s, Virgin Megastores entered the Dutch market with four locations: Amsterdam, Rotterdam, The Hague, and Maastricht. By 2000, the company exited the Netherlands by selling three stores to Free Record Shop and closing the Maastricht branch. Free Record Shop also acquired three Virgin Megastores situated in Belgium.
Spain and Portugal
Virgin Retail España inaugurated its Barcelona store in November 1992, followed by a Seville branch in 1993. Due to local restrictions, opening a flagship store in Madrid was not possible. Expansion continued through smaller airport outlets and concessions within Galerías Preciados department stores in Madrid until their closure in 1995. Subsequently, Virgin established medium-sized stores across Madrid, La Coruña, Vigo, Málaga, Bilbao, and Santander, along with larger locations in Lisbon and Oporto. However, by 1997, the rise of digital distribution profoundly disrupted their business model. Confronted with industry challenges and limited backing from labels, Virgin Retail Group closed all high street outlets throughout southern Europe. The flagship Barcelona store ceased operations in July 1998; its premises are now occupied by Zara.
UK
The UK’s first Virgin Megastore opened its doors in 1979 and expanded steadily throughout the 1980s and 1990s, including a merger with Our Price under WH Smith ownership. By the 1990s, Virgin Megastores had evolved into an international franchise operating within the Virgin Group.
In 2007, Virgin Group sold its UK and Ireland outlets via a management buyout, resulting in their rebranding as Zavvi. After supplier Entertainment UK—owned by Woolworths—collapsed, Zavvi entered administration on 24 December 2008 due to difficulties sourcing stock. By February 2009, Zavvi had shuttered all stores; some were acquired by competitors such as HMV while others were purchased by Simon Douglas and Les Whitfield’s Head Entertainment.
Turkey
Virgin entered the Turkish market in March 2011, opening a store within Istanbul’s Demirören shopping centre on İstiklal Street. Despite offering a selection of books, digital products, and electronics, it struggled to rival well-established local competitors and consequently ceased operations in autumn 2012.
Arab world
Since 2001, the Beirut-based Azadea Group has held exclusive rights to operate Virgin Megastores throughout much of the Middle East, except in countries where other franchises are already present. Under the name Virgin Megastores Middle East, Azadea oversees outlets in the UAE, Qatar, Bahrain, Egypt, Kuwait, and Jordan.
The franchise for Virgin Megastores in Lebanon and Saudi Arabia is exclusively held by Megastores of Lebanon S.A.L. In Morocco, Best Financière (Label Vie Carrefour) manages Virgin Megastores with exclusivity, consistently launching nearly one new store each year since 2010.
Since 2007, the Antar Group based in Damascus has maintained exclusive franchise rights for Virgin Megastores in Syria. However, due to ongoing disruptions from the Syrian Civil War beginning in 2011, all Syrian stores remain closed until political conditions improve.
Lebanon
Virgin’s premier store in Lebanon opened on 3 July 2001 within the historic Cinema Opera building located at Martyrs' Square, Beirut. This four-story flagship, inaugurated by Sir Richard Branson, was shuttered in 2018. Additional outlets operated at ABC Malls in Achrafieh, Dbayeh, Verdun, CityMall Dora, and Beirut International Airport. Expansion efforts included new branches at ABC Mall Dbayeh (November 2012) and ABC Mall Verdun (November 2017).
Saudi Arabia
Virgin Megastore debuted in Saudi Arabia with its first Riyadh location in February 2015. By year-end, the brand had expanded to four stores situated along Riyadh’s Tahliah Street (Roshana Centre), Red Sea Mall, Jeddah Domestic Airport, and Dhahran Mall in the Eastern Province. A fifth outlet launched at Hayat Mall, Riyadh, in November 2017.
Bahrain
As of September 2008, Virgin Megastore maintains a single location within Bahrain City Centre.
Egypt
The inaugural Virgin Megastore in Egypt opened at City Stars Mall, Cairo, in October 2005. A second branch followed at Mall of Arabia in 6th of October City in December 2011. Further growth included a third store at Festival City Mall, Cairo (June 2015), and a fourth outlet launched at Mall of Egypt on 27 September 2017.
Kuwait
Virgin Megastore’s first Kuwaiti store opened in 2002. By May 2008, two outlets were operational: one at Marina Mall, Salmiya, and another at Kuwait International Airport. The airport location closed by late 2011 while the Marina Mall branch ceased operations in March 2012. After a seven-year absence, Virgin Megastores re-entered Kuwait with a new store opening at The Avenues Mall in February 2020.
Qatar
Virgin Megastores operates six locations across Qatar, including its flagship outlet at the Italian-themed Villaggio Mall in Doha, serving as the mall’s primary anchor tenant. In November 2008, a smaller store opened at Landmark Mall Doha. Other venues include Mall of Qatar, Qatar Mall, Doha Festival City, Hamad International Airport’s departure area, and a kiosk located at The Pearl.
United Arab Emirates
The inaugural Virgin Megastore in the UAE debuted in September 2001 at Deira City Centre in Dubai, shortly following its launch in Beirut. The chain expanded with a second outlet opening in Abu Dhabi by October 2001, and a fourth store commenced operations in Jumeirah during 2002.
By October 2005, Virgin Megastore operated four locations within the UAE: Deira City Center, Burjuman, and Mercato Mall in Dubai, alongside Abu Dhabi Mall. The following month, Sir Richard Branson officially opened the region’s largest Virgin Megastore at Mall of the Emirates. This flagship spanned 4,000 square meters and was part of a $20 million investment strategy across the UAE.
Ownership transferred between 2009 and 2010 when franchise rights moved from Star Multimedia to Virgin Megastores Middle East under the Azadea Group’s management. By May 2010, new outlets had launched at Mirdif City Centre and Jumeira Beach residence, bringing the total UAE count to seven stores.
The eighth Virgin Megastore location opened in September 2011 within the prestigious Dubai Mall. However, the Jumeirah Beach residence branch closed prior to September 2012, reducing the total back to seven. In November 2012, a second Abu Dhabi store was inaugurated at Al Wahda Mall. By the end of 2012, the UAE hosted eight Virgin Megastores, six of which were situated in Dubai.
Growth persisted with a December 2014 opening at Yas Mall in Abu Dhabi and a July 2015 launch at Al Jimi Mall in Al Ain, marking the company’s thirteenth outlet across the UAE. Some earlier venues—such as Deira City Centre and Al Wahda Mall—have since shuttered due to evolving retail market dynamics. As of 2025, Virgin Megastore operates thirteen stores throughout Dubai, Abu Dhabi, Al Ain, and other emirates, sustaining its position as one of its most robust international markets.
Besides retailing entertainment products, these outlets also function as ticketing centers and event spaces hosting artist meet-and-greets, live performances, and interactive quiz nights. A dedicated boutique area showcases movie collectibles and jewelry. Certain flagship locations like Dubai Mall and Mall of the Emirates incorporate Fixsquad-run repair stations for smartphones and laptops, enhancing Virgin Megastore’s comprehensive lifestyle service offerings.
The brand’s prominent music retail footprint within the UAE fosters strong appeal among both local residents and expatriates, which accounts for its extensive branch network relative to other Gulf nations.
Jordan
Virgin Megastore launched its first Jordanian store in Amman at City Mall in September 2007. A second outlet followed in October 2015 at Taj Mall, also located in Amman.
Morocco
In 2007, Best Financière (Label Vie Carrefour) based in Rabat obtained franchise rights from Lagardère to operate Virgin Megastores across Morocco. The initial store opened at Almazar mall in Marrakech in April 2010, initiating a regional expansion that included plans for Tunisia and Algeria. A second location commenced operations at Kitéa Géant Mall in Rabat by December 2012, soon joined by two more outlets: one at AnfaPlace Shopping Center in Casablanca and another at Borj Fez Mall in Fez. The fifth store launched downtown Casablanca in September 2015, followed by a sixth opening adjacent to a Carrefour outlet in Sidi Maârouf near Casablanca during August 2016.
Syria
In 2007, the Damascus-based Antar Group obtained a franchise agreement from Lagardère to manage Virgin Megastores within Syria. Prior to the outbreak of the Syrian Civil War in 2011, the group commenced operations by opening a store located in Aleppo’s Al Shahba Mall. However, the business was forced to cease operations after the mall sustained significant damage amid the conflict.
Oman
Oman welcomed its inaugural Virgin Megastore in November 2015, situated within Muscat City Centre.
United States
Virgin Group collaborated with Blockbuster in 1992 to inaugurate the first Virgin Megastore on Los Angeles’ Sunset Strip, which ultimately shuttered in 2008. The U.S. Virgin Megastore venture, spearheaded by Richard Branson alongside CEO Ian Duffell, expanded to encompass 23 outlets at its zenith, generating annual revenues of approximately $310 million. In 2007, ownership transferred to Related Companies and Vornado Realty Trust, who proceeded to terminate long-term leases and close the stores.
Store closures
Following the acquisition, eleven stores were systematically closed throughout 2007. By 2 March 2009, it was declared that all remaining Virgin Megastores across the United States would cease operations. Earlier, the Arden Fair Mall location in Sacramento had closed in 2005 and was repurposed as an Urban Outfitters store, while the Grapevine Mills branch ceased trading at the end of 2008. Related Companies also revealed plans to shut down the Times Square flagship by April 2009, with Forever 21 taking its place.
In early 2009, outlets in San Francisco and New York’s Union Square closed in April and May respectively, followed shortly by announcements confirming the closure of all other U.S. locations. The Downtown Disney store at Walt Disney World permanently closed on 12 May 2009. By September 2012, only the Virgin Books & Music store at JFK Airport Terminal 3 remained operational; however, all airport-based stores were shuttered by mid-2013. The JFK Terminal 3 location ultimately closed when the terminal was demolished and converted into parking facilities in 2013.
In-stores
Most Virgin Megastore locations featured an internal radio system branded as Virgin Radio. Unlike a traditional broadcast station, U.S. Virgin Radio was a DJ-managed audio stream transmitted throughout the store and its adjoining areas. At the Times Square venue, music selections were played across retail floors, administrative offices, processing centers, and even extended to the sidewalk frontage along Broadway.
Staff members were easily recognizable by red or black t-shirts emblazoned with the Virgin logo and "STAFF" printed on the back, complemented by lanyards displaying their first names.
Technology
The U.S. Virgin Megastore chain implemented a proprietary GSA look-up system connecting all North American outlets via a private network infrastructure that refreshed product inventory data every one to two days.
In 2004, American Virgin Megastores introduced 'Crescendo,' a near real-time data warehouse aggregating point-of-sale transactions and customer foot traffic to produce rapid KPI reports. This system enabled management teams to detect emerging trends swiftly and make informed decisions promptly. The success of this technology influenced similar implementations across UK stores.
Virgin Megastore (U.S.) also ran a Customer Loyalty Program called 'Virgin V.I.P.,' which utilized a read/write 'Graphicard.' Purchases were instantly recorded on these cards through POS terminals, with integration extending to an online platform for enhanced user engagement.
Website
In 2002, Virgin Megastores' U.S. website, VirginMega.com, transitioned to a co-branded platform powered by Amazon. That same year, the Japanese site VirginMega.co.jp adopted a similar approach. By 2007, Virgin Megastores collaborated with Baker & Taylor to manage its online presence. VirginMega.com ultimately discontinued its services on 31 May 2009.
Canada
Canada's sole Virgin Megastore debuted in December 1996 at 750 Burrard Street, Vancouver. This three-story retail space spanned 40,000 square feet and was situated in Downtown Vancouver, occupying the former main branch of the Vancouver Public Library. The store closed on 4 September 2005 after HMV Canada announced plans to rebrand and expand the location as HMV, which launched the following day. With HMV's growing market share, Virgin withdrew completely from Canada. This HMV outlet eventually shut down in 2012.
A proposed second Canadian Virgin Megastore at Metropolis (currently 10 Dundas East) in Downtown Toronto was canceled following Virgin’s market exit. The premises are now home to an Adidas Performance store.
Australia
Virgin Megastores made their Australian debut in 1988 under the leadership of Richard Branson and Ian Duffell, CEO of Virgin Megastores Asia-Pacific. By 1992, outlets had opened in Sydney, Melbourne, and Adelaide. That year also saw a joint venture formed with Blockbuster Inc., but Virgin sold its stake to Blockbuster in 1993, which subsequently rebranded these locations as Blockbuster Music.
In October 2001, Ian Duffell of Brazin Limited—owner of Sanity, Australia's largest entertainment retailer—secured exclusive Australian licensing rights for Virgin Entertainment through agreements with Virgin Group. Brazin acquired 77 struggling UK Our Price stores and relaunched the Virgin Megastores brand in Australia, inaugurating the first store on Chapel Street, Melbourne in April 2002. Although there were plans to open 45 new stores and convert 55 IN2 Music locations, these ambitions were hindered by internal difficulties and overlap with Sanity’s market presence. Brazin’s entertainment division recorded a $27 million loss during 2002–03 and had opened only 12 Virgin Megastores by mid-2004.
Brazin divested its UK Sanity stores in September 2003. In July 2004, it partnered with Coles Myer to introduce 62 "Virgin at Myer" concept stores within Myer department stores. These outlets targeted families and differentiated themselves from Sanity’s youth-oriented branding. Despite initial setbacks, sales for "Virgin at Myer" rose by 45% within one year.
December 2004 marked the launch of Australia's first Virgin Books and Music travel retail outlet by Hachette Distribution Services (now LS Travel Retail) at Melbourne Airport; this concept expanded to five additional airports and one railway station before all locations closed by early 2012.
By mid-2010, Sanity Entertainment had shuttered all Virgin Megastores. In August that year, the "Virgin at Myer" stores ceased using the Virgin branding after Sanity chose not to renew its license agreement; these outlets either closed or reverted to standard audio/visual departments run by Myer itself, which were subsequently closed by 2011. This marked Sanity’s withdrawal from the Virgin brand despite a licensing contract extending until 2015.
At its height in 2006, Virgin Entertainment Australia operated 24 Virgin Megastores, 62 "Virgin at Myer" locations, and two Virgin Books and Music outlets. By September 2012, no Virgin Entertainment stores remained across Australia.
Japan
Virgin Megastores Japan Limited was established in 1990 as an equal partnership between Marui and the Virgin Entertainment Group, debuting its first outlet in Shinjuku. Throughout the 1990s, the brand expanded its presence with multiple new locations across Japan. On 19 September 2002, VirginMega.co.jp collaborated with Amazon.co.jp to launch an online platform similar to its U.S. equivalent; this website has since been discontinued.
In 2005, Culture Convenience Club purchased the 22 Virgin Megastore sites in Japan from Marui. By November 2008, the store count had decreased to 15. After the licensing agreement for the Virgin Megastore brand expired without renewal, Culture Convenience Club’s subsidiary Tsutaya Stores Holdings Co. intended to acquire Virgin Megastores Japan and transition these outlets to the Tsutaya brand by early 2009.
China
In November 2007, HDS Retail Asia Pacific (currently known as LS Travel Retail) launched China’s inaugural Virgin Books and Music travel retail location at Hongqiao International Airport in Shanghai. The store was still operational as of June 2012. Nevertheless, following Lagardère’s divestment and Virgin France’s insolvency in 2013, it is possible these stores have since ceased operations.
Virgin Books and Music
Virgin Books and Music is a retail chain under the Virgin brand specializing in entertainment products at airports and travel hubs. It is managed by Lagardère Services, a division of the French conglomerate Lagardère Group. These compact-format outlets are present in ten countries: Canada, China, Germany, Kuwait, Lebanon, Morocco, Poland, Spain, the United Kingdom, and the United States.