Virgin reviews Megastores.(News)

Virgin Retail is aiming to put the "mega" back into its Megastores chain by axing a series of less effective, smaller stores and opening bigger outlets instead.

As part of an extensive review of its entire UK business, the retailer is shutting its existing Manchester store after more than a dozen years on June 12 and opening a significantly larger store--although not for another two-and-a-half years.

Virgin head of marketing Andy Kendrick says the chain will be examined store by store, which is expected to result in an unspecified number of closures, and new sites opened with a general emphasis on "a move towards bigger sites and better locations". However, he firmly rejects reports that a third of the chain will be axed as it laces increased competition from the supermarkets and online.

"It's a chance for us to pick better locations, to be honest," he says. "Quite a few of the catchments we've traded have been a bit off pitch and, where there's the chance, we want to oflload some of these stores and come ...