Independent specialist Music Zone is to open its first store in London, going head-to-head with HMV and Virgin Megastores on Oxford Street.
Music Zone will open between the two music giants at the Tottenham Court Road end of the street in February.
The opening will kick-start the retailer's expansion in London, where another two central shops are planned next year. It now has 40 stores.
Music Zone intends to open throughout the South - with premises earmarked for St Albans and Milton Keynes - and the Midlands, where stores in Leicester, Coventry and Northampton are on the agenda.
Music Zone managing director Russ Grainger said: 'Trading toe-to-toe with the big boys on such a premier shopping street should prove to be interesting.'