First DVD specialist hits UK high street

Silverscreen, a DVD retailer backed by former New Look joint managing director Gavin Aldred, launches on Wednesday and plans 150 stores over the next three years.

Aldred is chairman of the business, founded by joint chief executives Sebastian James and Ernesto Schmitt. They aim for early-mover advantage with the first DVD specialist chain of scale.

Schmitt was founder of music download site peoplesound.com and a former group strategy director of EMI. James is former chief executive of investment firm Longwall Holdings. Silverscreen also has backing from private equity giant Apax Partners, although the sum has not been disclosed.

The first store opens at Lakeside and will be followed in September and October by shops in Kingston upon Thames, Basingstoke and Milton Keynes. Another two are planned before Christmas, with a concerted expansion next year.

Schmitt said: 'The (DVD) market is enjoying explosive growth, but it is under-represented by the existing retail infrastructure.

'Our aim is to roll out one store a week, but it will depend on how the high streets of Britain adopt us. We won't exclude acquisitions.'

It is understood that Silverscreen is interested in acquiring the music retail chain Sanity in a property deal that would give it 110 stores in the 1,500 sq ft to 2,500 sq ft (140 sq m to 230 sq m) range that it wants.

Silverscreen refused to comment on any possible deal.

The DVD market is fast overtaking music. It is worth close to£2 billion and is expected to rise to£2.6 billion by the end of 2004.