Virgin keeps alive plan for entertainment complex

VIRGIN Group's aborted plan to open a Virgin Megastore in Hong Kong may be revived in the form of a huge entertainment complex, though there is presently no solid timetable to do so.

'At some time, we will finally get our retail operation going down here,' Virgin boss Richard Branson said last week.

'We have been talking about it, but we have changed the concept somewhat of our retail, whereby we have been building cinema complexes, Virgin Megastores, a cafe . . . like big entertainment centres.' Mr Branson said this would be the eventual format for the Hong Kong store. The company has been talking to potential partners but may go into the venture alone.

Virgin teamed up with Wheelock several years ago to open a Megastore, but the partnership was terminated due to a lull in the retail sector and competition from Tower Records and HMV, which already have a strong presence.

'I think, this time round we'd like to find the site and have everything up and ready to go before we bring in outside partners. Or we might just do it ourselves.' Mr Branson said Virgin was poised for its next big venture - challenging the dominance of Coke and Pepsi on their home territory. Virgin will launch its own-brand cola drink in the US in September.

'Coke is so dominant there. If we could get one foot in the door and then use the sales of one territory to roll out around the rest of America, then it could be an enormous business.