HMV will open its first cinema this autumn as it continues to expand its reach beyond core entertainment retailing.

It has entered into a joint venture with cinema chain Curzon Artificial Eye to open a cinema called hmvcurzon above its Wimbledon store.

HMV chief executive Simon Fox said that the trial could be rolled out to larger stores of both its eponymous chain and Waterstone’s stores.

The cinema will be accessible to customers during normal trading hours through the HMV store, but will have a separate entrance for when the store closes.

HMV group chief executive Simon Fox said: “Millions of film fans visit HMV’s high street stores each year, making them an ideal destination for this new type of cinema experience. This exciting partnership with Curzon Artificial Eye complements our recent joint venture for live music, and further demonstrates our commitment to getting our customers even closer to the film and entertainment content they love.”

This is the latest reaction by the entertainment retailer to the shrinking margins in the sector. In January this year HMV announced a joint venture with venue operator MAMA Group in a £1bn move to expand the group into the more lucrative live music business.