Zavvi

Infobox Company
name = Zavvi

type = Public
genre =
foundation = start date|2007|09|df=yes (as Zavvi)
1971 (as Virgin Megastores)
founder = Richard Branson (1971 Virgin)
location_city = London
location_country = England, UK
location =
locations = 131
area_served = UK and the Republic of Ireland
key_people = Simon Douglas, managing director
Steve Peckham, finance director
Guy Meisl, head of logistics
Gary Williamson, head of music
Steve Kincaid, e-commerce director
industry = Retail
products = Books
Consoles
DVDs
Games
Magazines
Music
T-Shirts
services =
market c

revenue =
operating_income =
net_income =
assets =
equity =
owner =
num_employees = 2,500 (2007) [cite web |url=http://www.virgin.com/Companies/VirginMegastoreUK/VirginMegastoreUK.aspx |title=Virgin Megastore UK |publisher=Virgin Group |accessdate=2008-04-11]
parent = Zavvi entertainment group
divisions =
subsid =
homepage = [http://www.zavvi.co.uk/ Zavvi.co.uk]
[http://www.zavvi.ie/ Zavvi.ie]
footnotes =
intl = yes

Zavvi (also known as zavvi.co.uk) is an entertainment retail chain in the UK and Republic of Ireland, originally Virgin Megastores. Zavvi was formed in September 2007 when a management buy-out team purchased the company from Sir Richard Branson's Virgin Group.

History

Virgin era

Sir Richard Branson started his first Virgin store on London's Oxford Street in 1971. In 1979 the company opened their first Megastore at the end of Oxford Street and Tottenham Court Road.

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. [cite web |url=http://www.ft.com/cms/s/0/9df0af36-646c-11dc-90ea-0000779fd2ac.html |title=Branson lets go of record store chain |publisher=Financial Times |date=2007-09-16 |accessdate=2008-04-05]

On 17 September 2007 it was announced that the UK arm of the Virgin Megastores brand was to break away from the Virgin Group. [cite web |url=http://news.bbc.co.uk/1/hi/business/6998606.stm |title=Branson sells Virgin music stores |publisher=BBC News |date=2007-09-17 |accessdate=2008-04-05] 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 Sainsbury's, 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, 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. [cite web |url=http://www.mcvuk.com/news/28471/Zavvi-outlines-new-identity |title=Zavvi outlines new identity |publisher=MCV |date=2007-10-08 |accessdate=2008-04-05] Zavvi also appointed creative marketing agency Live & Breath to lead the rebranding of the stores. [cite web |url=http://www.nma.co.uk/Logon/ResourceBarrier.aspx?RequiredServices=17,|&PipelinedPage=/Articles/35511/Zavvi+appoints+agency+for+Virgin+Megastores'+rebrand.html&PipelinedQueryString=liArticleID%3d35511 |title=Zavvi appoints agency for Virgin Megastores' rebrand |publisher=New Age Media |date=2007-10-30 |accessdate=2008-04-05] Rebranding began in November 2007. [cite web |url=http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article2477452.ece |title=Richard Branson turns to Zavvi to take Virgin Megastores off his hands |publisher=The Times |date=2007-09-18 |accessdate=2008-04-05] 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" [cite web |url=http://www.mcvuk.com/news/30160/MCV-Awards-08-The-winners-in-full |title=MCV Awards '08 |publisher=MCV |accessdate=2008-04-14] .

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. [cite web |url=http://www.dailyrecord.co.uk/entertainment/music/music-news/2007/11/09/wets-to-play-intimate-gig-86908-20085013/ |title=Wets to play intimate gig |publisher=DailyRecord |date=2007-11-09 |accessdate=2008-04-05] Zavvi continues to hold signings, performances and appearances from a variety of musicians and authors [cite web |url=http://www.zavvi.co.uk/eventslist.jsf |title=Instore events |publisher=zavvi.co.uk |accessdate=2008-04-05] .

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 [cite web |url=http://www.mcvuk.com/news/29405/OPINION-Zavvi-clamps-down-on-crazy-discounting |title=Zavvi rules out 'crazy discounting’ |publisher=MCV |date=2000-23-01 |accessdate=2008-04-11] . Items can be returned within 28 days as long as they are in perfect condition [cite web |url=http://www.zavvi.co.uk/help_returns/i.jsf |title=Returns policy |publisher=zavvi.co.uk |accessdate=2008-04-11] . Zavvi aims to differentiate itself from its competitors by introducing limited edition and exclusive products in the future [cite web |url=http://www.mcvuk.com/opinion/131/Zavvi-New-Year |title=Zavvi New Year |publisher=MCV |accessdate=2008-04-11] . Zavvi launched its first advertising campaign over the 2007 Christmas trading period [cite web |url=http://www.brandrepublic.com/News/767968/Zavvi-launches-first-TV-campaign/ |title=Zavvi launches first TV campaign |publisher=BrandRepublic.com |date=2007-11-20 |accessdate=2008-04-11] .

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.

The visual media department primarily consists of DVDs. As of March 2008, with the demise of the HD DVD format, Zavvi stores only stock the Blu-ray High-definition video format. The visual media section can be sub-divided into animation, children's, comedy, documentary, DVD boxsets, chart/new releases, health & fitness, martial arts, music, world cinema, TV drama and films.

The music department features a chart wall of the top 100 albums. The stores back-catalog can be sub-divided into blues, children's, classical, country, dance, easy listening, folk, jazz, metal, hip-hop, rap, reggae, soundtracks and world music. As of September 2008, Zavvi Stores no longer stocks singles or features a separate chart wall for the top ten singles.

Music merchandise including badges, magazines, posters, stickers and T-Shirts are also stocked along with board games, MP3 players and wall art among other things. Following a successful trial period for books, eventually all Zavvi stores will feature a books department [cite web |url=http://www.thebookseller.com/news/55686-zavvi-to-roll-out-books-in-125-stores.html |title=Zavvi to roll out books in 125 stores |publisher=thebookseller.com |date=2008-03-28 |accessdate=2008-03-29] .

Some stores have an individual Virgin Media section that operates individually 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-storecite web |url=http://www.zavvi.co.uk/contactus.jsf |title=Contact us |publisher=zavvi.co.uk |accessdate=2008-04-05] , stores will also continue to accept Virgin vouchers for the foreseeable future. Virgin Tribe members receive 10% off most purchases and 5% off hardware [cite web |url=http://tribe.virginmoney.com/tribe/deals/shop_drop/zavvi.html |title=Tribe - Zavvi |publisher=Virgin Money |accessdate=2008-04-05] . Staff members are entitled to 20% off most purchases and 10% off hardware [cite web |url=http://www.zavvicareers.com/html/working_with_us/rewards_and_benefits/ |title=Zavvi Rewards and Benefits |publisher=Zavvi careers |accessdate=2008-04-05] . 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.

Virgin Addict cards are no longer issued or stamped as of February 2008.

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. [cite web |url=http://whitepapers.zdnet.co.uk/0,1000000651,260089233p,00.htm |title=Virgin Retail Installs Symbol LS 9100 Scanners in Oxford Street Megastore |publisher=ZDNet |date=2004-06-11 |accessdate=2008-04-05]

Zavvi also uses an in store customer ordering system named WES.

Zavvi.co.uk

The [http://www.zavvi.co.uk/ zavvi.co.uk] website operates as Zavvi online limited, a subsidiary of the Zavvi entertainment group. It is registered in Guernsey. [http://www.hybris.com/ Hybris] , a multi-channel communication and commerce software vendor and its implementation partner [http://www.javelingroup.com/ Javelin Group] assisted in the 70% increase in Zavvi's online during its first Christmas in 2007 [cite web |url=http://www.sourcewire.com/releases/rel_display.php?relid=37760&hilite= |title=Zavvi has online retail success thanks to Hybris e-Commerce platform |publisher=sourcewire |date=2008-03-26 |accessdate=2008-03-29] .

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 [cite web |url=http://www.mcvuk.com/news/28339/New-Virgin-Megastores-targets-games-after-Virgin-MM |title=Zavvi targets games |publisher=MCV |date=2007-01-21 |accessdate=2008-04-05] . This was followed up by the announcement that Zavvi's in-store games department is to expand by 15% [cite web |url=http://www.mcvuk.com/news/29384/Zavvis-games-space-set-to-swell |title=Game space set to swell |publisher=MCV |date=2008-01-21 |accessdate=2008-04-05] 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 [cite web |url=http://www.mcvuk.com/news/29405/OPINION-Zavvi-clamps-down-on-crazy-discounting |title=Zavvi rules out crazy discounting |publisher=MCV |date=2008-01-23 |accessdate=2008-04-05] . All Zavvi stores will feature a book department following a successful trial [cite web |url=http://www.thebookseller.com/news/55686-zavvi-to-roll-out-books-in-125-stores.html |title=Zavvi to roll out books in 125 stores |publisher=thebookseller.com |date=2008-03-28 |accessdate=2008-03-29] .

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 [cite web |url=http://www.independent.ie/business/irish/836434m-virgin-loss-hits-new-owners-1297995.html |title=€3.4m Virgin loss hits new owners |publisher=The Independent |date=2008-01-26 |accessdate=2008-04-05] .

See also

* Virgin Megastores

References

External links

* [http://www.zavvi.co.uk/ Zavvi.co.uk]
* [http://www.zavvicareers.com Zavvi careers]
* [http://www.zavvi.ie/ zavvi.ie]