The Hut Group are proud to announce they will be powering a white label entertainment store for Debenhams at www.debenhams.com. The store will contain over 200,000 DVD, Blu-ray, CD and Games products supplementing the 20,000 products the leading department store merchandises currently at its online store.

“My team are working with Debenhams to create a significant launch plan to generate traffic and sales at the new entertainment store; the first of its kind within a traditional department store site”, says Richard Chapple, Commercial Director of The Hut Group.

“I’m really excited about the opportunity to communicate our entertainment product range to a department store demographic. I’m positive we’ll be able to grow the film, music and games market with a tactical and segmented marketing campaign to Debenhams’ customers while delivering great commercial return”, Chapple continues.

While the white label is trading, taking advantage of immediate sales potential, both parties will be working on a more advanced ‘API’ drop ship feed solution, which will enable The Hut Group to plug its products directly into Debenhams’ ecommerce platform, removing the need for the white label store in time for peak trading in Q4 2010.

Marilyn Hunt, Internet Trading Manager at Debenhams said, “The Hut Group are the perfect solution for our online entertainment offer. Their online retail expertise in all disciplines from procurement, marketing and infrastructure to fulfilment and customer service mean we can continue our commitment to offer Debenhams’ customers greater value, a wider choice and excellent service”.

The entertainment store will launch on 1st April 2010 and can be found at the Debehams homepage.

About Debenhams

Debenhams is a leading department stores group with a strong presence in key product categories including Womenswear, Menswear, Childrenswear, Home and Health and Beauty. Debenhams is the second largest department store chain in the UK.

Debenhams operates 158 stores in the UK and the Republic of Ireland, comprising 145 full departments stores and 13 Desire by Debenhams stores, which is a small store concept featuring an edited product range. In November 2009, Debenhams acquired six stores in Denmark through the acquisition of the leading Danish department store group Magasin du Nord. Debenhams also has 51 international franchise stores in 18 countries. Debenhams also has an online store at www.debenhams.com, through which much of the Debenhams range is available.

Designers at Debenhams include Ted Baker, Jasper Conran, Erickson Beamon, Pip Hackett, Henry Holland, Betty Jackson, Ben de Lisi, Julien Macdonald, Melissa Odabash, Jane Packer, Pearce Fionda, Janet Reger, John Rocha and Matthew Williamson.

Clearwater Corporate Finance advised The Hut Group on the deal, which will see the creation of up to 100 jobs over the next 12 months at their head office in Northwich, Cheshire, where the company also runs TheHut.com.

The new Zavvi website will offer consumers a much broader range of entertainment products as well as a new range of lifestyle products, including electricals, computing & perfumes. Zavvi.co.uk will be driven by a major focus on delivering exceptional customer service and product availability at much lower price points than previously on offer. Free delivery will be standard on all products sold on the Zavvi website. Today’s launch of Zavvi.co.uk will be supported by an extra 10 per cent discount across all products until midnight on Friday 6 March.

Matthew Moulding, CEO of The Hut Group, comments, “Zavvi is a major player in entertainment retail, both in the UK and Ireland. Our aim is to capitalise on this well recognised high street brand and transform the business into a leading class online retailer, not only in entertainment, but also across lifestyle products. The new discounted price points, supported by significant future investment in customer driven functionality improvements, should enable us to create an exciting online retailer.

“The team is excited about the opportunities this acquisition presents and the growth plans across The Group will be supported by our continuing drive to add talented new members to the team across most disciplines.”

In addition to TheHut.com, The Hut Group delivers complete online retail platforms for many major retail brands such as Asda, WH Smith, Phones 4U & LoveFilm. The Group anticipates achieving sales of more than £75 million in 2009, having achieved a turnover of £25 million in 2008. The Hut Group currently employs over 100 people.

Carl Houghton, partner with Clearwater Corporate Finance added; “The Hut Group is a welcome bright spot amidst the doom and gloom in the retail sector. Through mergers and acquisitions, The Hut Group intends to push into further categories and is a transformational partner for good but subscale B2C ecommerce businesses.”