Moving out of the core: sale of Universal's mail-order arm highlights shifts in retail landscape.(Mail order)

It is a simple business approach, but a highly effective one for the new owner of Universal's UK and French mail-order operations. Within the confines of M&A giant Platinum Equip, an entire team of people is understood to operate with the sole purpose of cold-calling big companies, asking if they have any non-core divisions they wish to dispose of.

However it came about, their latest deal saw it pick up Universal Group Direct, whose interests include the long-established Britannia Music Club and Britannia's French sister company Dial.

Platinum Equity is an enormously wealthy private speculator which focuses on non-core companies of all kinds, particularly in the technology field.

In this sense, it believes that its latest acquisition offers some exciting challenges. Ross Young, one of the Platinum Equity operations executives tasked with managing the company's transition under its new ownership, believes there is plenty of life yet in the physical-based business model.

"We recognise that the business does have some challenges in terms of a changing product mix," he says. "But we see positive trends which make this an interesting opportunity for us. There is a channel there, there is an audience there and there is a well-honed supply chain. These companies are the confirmed market leaders and that always excites us, when we see that presence and leadership."

Universal's sale of UGD is the latest example of the once multi-functioning majors streamlining their operations. In recent years, such policies have seen EMI's closure and subsequent sale of its Hayes manufacturing plant in 2001 and Universal's sale of its manufacturing facilities to Disc-tronics in 2002, Sony's sale of its Whitfield Street Studios in 2003 and Sow and Warner's disposal of Ten to Cinram last year.

That even a merged, consolidated giant such as Universal continues to shed bulk points to a further trend: that in shaping up for a nebulous digital future, record ...