Handleman to Manage Entertainment for U.K. Grocery Chain14 Mar, 2006 By: Jessica Wolf
Tesco PLC, the leading United Kingdom grocery chain, is getting some extra muscle for its stock of entertainment goods.
Entertainment distributor Handleman Co. and Tesco announced that Handleman, beginning in April, will serve as category manager for Tesco's supply of music, videos and video game titles.
The Troy, Michigan-based company will provide distribution, in-store merchandising and category management for entertainment goods at the chain's 700 locations across the region.
The rolling agreement is terminable by either party after four years.
Tesco reports annual revenues of about $65 billion and Handleman expects to generate $50 million in annual service revenue as a result of the agreement with the retailer.
“This opportunity aligns with our strategic focus of growing our business through providing services based on our core competencies, as well as accomplishing customer diversification,” said Stephen Strome, chairman and CEO of Handleman.
Handleman represents more than 11% of all music sold in the United States, more than 25% in Canada and more than 9% in the United States, according to the company. Handleman reports $1.2 billion in annual sales from the 4,000 stores it manages on three continents.