GOLDEN DISCS CONCESSIONS will move into more than half of Tesco’s Ireland stores as part of a three-year deal beginning today.
The concessions will operate as standalone units within 80 Tesco outlets offering CDs, DVDs and video games. The agreement will make Golden Discs Ireland’s largest home-entertainment retailer with 94 locations nationwide.
Established in 1962, Golden Discs currently operates 14 stores around Ireland and employs over 150 people.
At its peak, the company had over 50 standalone outlets, however the shift to music and video downloads, followed by the streaming trend and the recession, decimated the company’s business, as it did rivals like HMV.
Nevertheless, Golden Discs has started to grow again in recent years, opening new shopfronts including recent superstores on Dublin’s Henry Street and at Dundrum Town Centre.
A new chapter
The company’s most recent accounts, to the end of June 2014, show gross profits were up nearly 60% on the 2013 tally, although net income was down to a meagre €31,000 for the year.
It previously said revenue for the 12-month period hit €12 million with the firm also enjoying higher profit margins, although the one-off costs associated with opening new stores ate into its bottom line.
CEO Stephen Fitzgerald said the new deal was “an exciting new chapter for Golden Discs”, while Tesco Ireland commercial director Sheila Gallagher said it was an ideal fit.
“We are delighted that our customers will be able to enjoy its innovative range of home-entertainment offerings and music, movie and games products as part of their Tesco shop,” she said.
Reporting by Paul Hosford and Peter Bodkin.