Entertainment retailer Zavvi is poised to broaden its product ranges after phenomenal growth in game sales helped it rack up a strong Christmas performance.

Fashion, book and MP3 ranges will all be rolled out to stores this year, as the management of the former Virgin Megastores diversify the range in an effort to return the chain to profitability.

The plans come after games outsold music in stores for the first time, helping it notch up a 10.2 per cent increase in comparable store sales in the four weeks to January 5. Online sales rocketed 70 per cent and margins rose 2 per cent. Over a 10-week period, like-for-likes were up more than 9 per cent.

Game sales soared 62.7 per cent, despite shortages of key products such as the Nintendo Wii and DS. DVDs also performed well, with comparable sales up 6.4 per cent. However, music was weak with a 11.6 per cent fall, which managing director Simon Douglas blamed on a poor release schedule.

He said the diversification of products was about creating an identity for Zavvi as a specialist in entertainment and not just music. “Virgin Megastores was tarnished by being seen as just a music retailer,” he said. “But this is a fresh start and we are able to communicate about other product areas.”

A book range has been tested at the new Exeter store and will be rolled out during the year, starting with Glasgow later this month. Clothing such as t-shirts, belts and shoulder bags has also been tested in several stores and will be introduced to all stores.

In both cases, the new ranges will be prominently merchandised and will relate to Zavvi’s popular culture strengths, with books by Banksy and Russell Brand having figured strongly in the Exeter trial. A greater prominence for MP3 players such as iPods in stores is also planned.