Zavvi:

Between the 1980s and 1990s, the chain grew steadily, most notably through its merger with Our Price whilst under the ownership of WH Smith. By the 1990s Virgin Megastores had become an international franchise as part of the Virgin Group.

Zavvi era

During the early to mid 2000s Virgin Group decided to sell off most of its Virgin Megastores to various companies, including the Lagardere Group. The UK and Ireland arm of Virgin Megastores was purchased by members of the management, led by managing director Simon Douglas and finance director Steve Peckham, for an undisclosed sum.^[2]

On 17 September 2007 it was announced that the UK arm of the Virgin Megastores brand was to break away from the Virgin Group.^[3] A management buy-out offer was accepted which resulted in the Managing Directors taking the company on as the largest independent entertainment retailer in the UK. EUK, the company's main stock supplier, also the supplier to chains including Woolworths and Sainsburys, were not involved with the MBO but are investing heavily to support the new management team, employing most of the ex-Virgin buying team. After the change of ownership all 125 stores continue to trade under the name "Zavvi" rather than "Virgin Megastores".

On 8 October 2007, Zavvi Chief Executive Officer, Simon Douglas unveiled his "clear and simple" logo for the Zavvi stores and website. The distinctive portion of the logo is the Z in the dot of the i.^[4] Zavvi also appointed creative marketing agency Live & Breath to lead the rebranding of the stores.^[5] Rebranding began in November 2007.^[6] In January 2008 the online system was rebranded to "Zavvi.co.uk" and Virgin Megastores Ireland changed to 'Zavvi Ireland'.

Awards

On 11 April 2008, Zavvi's Oxford Street outlet won the MCV Industry Excellence Star Store award due to its "fine retail experience"^[7].

In-store events

In November 2007 the Scottish pop band Wet Wet Wet were the first band to play two gigs at Zavvi stores, in Glasgow and London.^[8] Zavvi continues to hold signings, performances and appearances from a variety of musicians and authors^[9].

Merchandising

Zavvi operates primarily with prices of its products at round figures, similar to Fopp. The managing director ruled out 'crazy discounting' of its products though still maintains the need to compete against other firms^[10]. Items can be returned within 28 days as long as they are in perfect condition^[11]. Zavvi aims to differentiate itself from its competitors by introducing limited edition and exclusive products in the future^[12]. Zavvi launched its first advertising campaign over the 2007 Christmas trading period^[13].

Product range

Zavvi stores can be divided into three primary sections: Visual Media, Games and Music.

The games department comprises games and accessories for all of the major consoles from the Xbox 360, PS3, PS2, Wii, DS and PSP along with some PC games.

Some stores have an individual Virgin Media section that operates independently from the Zavvi store.

Staff uniform

Previously, Zavvi employees could be identified by their Zavvi lanyards which read "Staff here to help"; They carry the Zavvi logo, as does the necklace. As of May 2008, T-shirts were distributed to all staff, which carry the green "Z" logo on the left breast and the word "staff", also in green, across the back. On the sleeve there is a small Blu-Ray logo in white.

Occasionally, staff will be issued with alternative T-shirts for promotional purposes.

Discounts

Zavvi remains partners with the Virgin Group, Virgin Money cardholders are entitled to 10% off both online and in-store^[15], stores will also continue to accept Virgin vouchers for the foreseeable future^[15]. Virgin Tribe members receive 10% off most purchases and 5% off hardware^[16]. Staff members are entitled to 20% off most purchases and 10% off hardware^[17]. Students are able to qualify for a Zavvi student card when a valid form of identification is provided such as a NUS card or a UCAS card.

Stores

Technology

The computer system at the heart of Zavvi is ELVIS (EPoS Linked Virgin Information System), which was designed for Virgin Megastores in 1991. ELVIS collects data from shop's point-of-sale terminals for stock and sales reporting, provides instant information for customers on all the shop's product lines and allows for electronic re-ordering from suppliers. In September 2006 ELVIS was updated to utilise "RealTime Polling", with inventory updates every 15 minutes providing accurate on-hand stock information and producing up-to-date sales reports.^[19]

Zavvi.co.uk

The zavvi.co.uk website operates as Zavvi Online Limited, a subsidiary of the Zavvi Entertainment Group. It is registered in Guernsey. Hybris, a multi-channel communication and commerce software vendor and its implementation partner Javelin Group assisted in the 70% increase in Zavvi's online during its first Christmas in 2007^[20].

Future

On 21 September 2007, Simon Douglas announced that Zavvi would be making a fresh start in the entertainment retail space. This included the plans to focus more on the sale of games, to compete with GAME and Gamestation^[21]. This was followed up by the announcement that Zavvi's in-store games department is to expand by 15%^[22] due to its success over the 2007 Christmas trading period. An announcement two days later also revealed that Zavvi will differentiate between the store and their competitors with limited editions and exclusive products in addition to increasing the stores online market share during 2008^[23]. All Zavvi stores will feature a book department following a successful trial^[24].

However, Zavvi Ireland is burdened with a loss of €3.4 million in the year ending March 2007 which the management team will need to work hard to reclaim^[25].

Zavvi

Contents

History

Virgin era