Zavvi suspends online orders

Zavvi, the high-street music retailer, has suspended taking orders on its website following the collapse of Woolworths.

A message on its website says: "We are currently experiencing supply problems and have temporarily suspended orders until the supply situation is resolved."

Zavvi, which previously traded as Virgin Megastores, has been struggling with supply issues following Woolworths demise; Zavvi had an exclusive supply agreement to get all of its stock from Entertainment UK, which supplied Woolworths.

In order to maintain stock levels of CDs and DVDs in its 125 shops in Britain and Ireland, Zavvi has taken the decision to cease trading online.

Customers who made purchases on Zavvi.co.uk should have been notified by email if their order was cancelled. Zavvi is refunding customers whose orders they can not fulfill. Customers can check order status by logging in to their Zaviv.co.uk account.

Mark Mulligan, a music analyst with Jupiter Research, said that music retailers could benefit from the credit crunch in the run up to Christmas as people opt to buy cheaper presents, but Zavvi's web store will not benefit having ceased online trading.

"Many people will have less money to spend over Christmas, or will opt to spend less because of fears of financial insecurity in 2009, " Mulligan said.

"Thus many people could chose to buy cheaper presents such as CDs, DVDs and books rather than higher consideration items such as consumer electronics," he added.

www.zavvi.co.uk
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